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Indian rupee ends slightly down on dollars demand

25 Jan 2012 Evaluate

Indian rupee ended slightly down on Wednesday and moved in a narrow-band throughout the day as month-end dollar demand from oil importers restricted its gains. However, foreign capital inflows, euro gains against the American currency and RBI’s stunt to support growth in its monetary policy review on Tuesday mainly kept rupee sentiment firm in the early trade session. Higher shares boosted the outlook for foreign fund inflows but were unable to offset persistent demand for dollars from oil importers. Agents will be watching the federal government's budget proposals and reform initiatives for clues on fund inflows from foreign institutional investors (FIIs).

Finally the rupee ended at 50.0900, weaker by 5 paise from its previous close of 50.0450 on Tuesday. It has touched a high and a low of 50.2400 and 49.9800 respectively. The Reserve Bank of India's reference rate for the dollar stood at Rs 50.0215 and for Euro it stood at 65.1255 on January 25, 2012. While, the RBI's reference rate for the Yen stood at 64.19 the reference rate for the Great Britain Pound (GBP) stood at 78.0535. The reference rates are based on 12 noon rates of a few select banks in Mumbai.

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