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Rupee strengthens after surprise rate cut of 25 bps by RBI

15 Jan 2015 Evaluate

Indian rupee, after taking a breather in the previous session, yet again resumed its appreciating streak tailing massive gains of local equities after Reserve Bank of India, in a big surprise, cut the repo rate by 25 basis points to 7.75% with immediate effect, ahead of its policy review on February 3, 2015. Besides, dollar sales by exporters and corporate amidst sustained capital inflows also added to the positive milieu. On the global front, dollar edged up in Asian trade on Thursday, regaining some ground lost overnight after a surprisingly big fall in U.S. retail sales.

The partially convertible currency is currently trading at 61.76, stronger by 43 paise from its previous close of 62.19 on Wednesday. The currency touched a high and low of 62.19 and 61.71 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.

Date1US$1GBP
January 14, 201562.15 94.24
January 13, 201562.1094.09

(RBI-Reference Rate)

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