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Rupee closes at nine months low on Thursday

11 Dec 2014 Evaluate

Indian rupee extended its weakening trend on Thursday on sustained dollar demand from importers and fresh capital outflows. The domestic currency made a weak start and remained under pressure throughout the day due to the plunge in the local as well as global equity markets, while the dollar's gains against other currencies overseas too weighed on the sentiments. The rupee fell to its over nine month intraday low of 62.355 versus the US dollar with no support at sight. In the global markets the yen fell for the first time in four days against dollar on speculation Prime Minister Shinzo Abe’s Liberal Democratic Party may win the election.

Finally the rupee ended at 62.34, weaker by 32 paise from its previous close of 62.02 on Wednesday. The currency touched a high and low of 62.35 and 62.12 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 62.20 and for Euro stood at 77.48 on December 11, 2014. While, the RBI’s reference rate for the Yen stood at 52.68, the reference rate for the Great Britain Pound (GBP) stood at 97.8001.

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