Indian rupee depreciated against the dollar on Wednesday snapping five consecutive sessions’ appreciating streak spurred by selling witnessed in local equity markets amidst high volatility and on consistent demand for the US currency from companies and state-owned banks. Release of better than expected WPI inflation strengthening the case for the RBI to cut rates however, helped to cap the losses in the local unit. On the macro front, Wholesale price inflation inched up to 0.11% in December, snapping a six-month easing trend as food costs jumped up year-on-year. On the global front, the yen rose to its strongest level in four weeks against the dollar as investors sought haven assets on concern steep declines in commodity prices signaled the global economy is slowing.
Finally the rupee ended at 62.19, weaker by 4 paise from its previous close of 62.15 on Tuesday. The currency touched a high and low of 62.22 and 62.08 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 62.15 and for Euro stood at 73.30 on January 14, 2015. While, the RBI’s reference rate for the Yen stood at 52.08, the reference rate for the Great Britain Pound (GBP) stood at 94.24. The reference rates are based on 12 noon rates of a few select banks in Mumbai.
