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Rupee holds tad strong despite broad dollar strength

03 Mar 2015 Evaluate

Indian rupee was holding bit strong on Tuesday tailing slender gains of local equities, however further gains were limited on account of broad dollar strength, which offset expectation of increased  foreign fund inflows post budget. Gains of local unit also were limited on account of subdued fiscal deficit data, which overshooting the budget estimate by 107% rose to Rs 5.68 lakh crore in April-January period as against the annual budget estimate of Rs 5.31 lakh crore. In yet another dismal data point, growth in eight core industries, contributing 38% to the overall industrial production slowed down to 1.8% in January, compared to by 3.7% in January 2014 and 2.4% in December 2014. On the global front, dollar pulled back a little from an 11 year peak against basket of major currencies on Tuesday, with the Australian dollar stealing the spotlight as it surged  after the Reserve Bank of Australia stood pat on interest rates.

The partially convertible currency is currently trading at 61.82, stronger by 5 paise from its previous close of 61.87 on Monday. The currency touched a high and low of 61.92 and 61.80 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 61.82 and for Euro stood at 69.13 on March 2, 2015. While, the RBI’s reference rate for the Yen stood at 51.62, the reference rate for the Great Britain Pound (GBP) stood at 95.2658. The reference rates are based on 12 noon rates of a few select banks in Mumbai.

Date1US$1GBP
March 2, 201561.8295.2658
February 27, 201561.7995.4235

(RBI-Reference Rate)

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