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Rupee witnesses consolidation after four consecutive sessions of appreciating streak

13 Jan 2015 Evaluate

Indian rupee witnessed consolidation after four consecutive sessions of appreciating on Tuesday as gains on dollar’s weakness against other major currencies were offset by losses in local equities. Nevertheless, positive macro-economic data released after market hours on Monday, limited losses of local unit. On the macro-front, the index for IIP for the month of November hit a five month high of 3.8% at 169.8, higher than street’s expectation of figure of over 2%, while, India’s Consumer Price Index (CPI), snapping four consecutive month easing trend, edged higher to 5% in December as compared 4.38% in November. On the global front, dollar skidded to its lowest level against the yen in a month on Tuesday, as Treasury yields fell on increased demand for safe-haven assets against a backdrop of plunging oil prices.

Finally the rupee ended at 62.15, little changed from its previous close of 62.16 on Monday. The currency touched a high and low of 62.20 and 62.02 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 62.10 and for Euro stood at 73.41 on January 13, 2014. While, the RBI’s reference rate for the Yen stood at 52.28, the reference rate for the Great Britain Pound (GBP) stood at 94.0971. The reference rates are based on 12 noon rates of a few select banks in Mumbai.

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