Indian rupee after making flattish start, moved in narrow range for the entire trading session and concluded little changed on Wednesday as strong dollar demand from importers and banks in view of its strength overseas weighed on the sentiment. However, any slide was limited on account of prevailing positive sentiment after RBI in its fifth bi-monthly monetary policy review underscored that it could ease monetary policy early next year. Additionally, slender gains of local equities also restricted losses of local unit. On the global front, dollar hit a seven-year peak against the yen on Wednesday, following a rise in U.S. bond yields and Federal Reserve officials' mostly upbeat comments on the outlook for the U.S. economy.
Finally the rupee ended at 61.91, little changed from its previous close of 61.89 on Tuesday. The currency touched a high and low of 61.95 and 61.83 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 61.88 and for Euro stood at 76.57 on December 03, 2014. While, the RBI’s reference rate for the Yen stood at 51.93, the reference rate for the Great Britain Pound (GBP) stood at 96.8278.
