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Rupee ends firm on improved global risk appetite

31 Jan 2012 Evaluate

The rupee ended firm on Tuesday supported by positive local shares and improved global risk appetite as fears of a possible debt default by Greece eased slightly. The euro rose and world shares recovered on hopes of a deal this week to free up the next tranche of aid for Greece. Easing demand for dollars by oil importers to meet end-month payments added to support for the rupee. However, rupee’s recent surge was driven by an increase in capital flows particularly deposits by non-resident.  In January, the rupee has jumped around 7% against the dollar so far, its biggest monthly gain since the last quarter of 2001.

Finally the rupee ended at 49.46, stronger by 32 paise from its previous close of 49.78 on Monday. It touched a high and a low of 49.74 and 49.33 respectively. The Reserve Bank of India's reference rate for the dollar stood at Rs 49.6825 and for Euro it stood at 65.5157 on January 31, 2012. While, the RBI's reference rate for the Yen stood at 65.18 the reference rate for the Great Britain Pound (GBP) stood at 78.1704. The reference rates are based on 12 noon rates of a few select banks in Mumbai.

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