Indian rupee, after hitting one month high level, erased all its gains and ended weaker, past psychologically crucial ‘62/$’ level on Wednesday on incremental dollar demand from banks and oil marketing companies. The currency appreciated to one month high after Reserve Bank of India (RBI), giving its affirmation to the fiscal consolidation measures announced by the government in the Budget slashed repo rate by 25 basis points or 0.25% to 7.5%. However, the initial euphoria fizzled away tailing massive profit-booking in local equity markets. On the global front, dollar held firm near an 11-year high versus a basket of major currencies on Wednesday, as investors awaited U.S. economic data and a European Central Bank meeting later this week for fresh clues on policy direction.
Finally the rupee ended at 62.26, weaker by 34 paise from its previous close of 61.92 on Tuesday. The currency touched a high and low of 62.27 and 61.65 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 61.85 and for Euro stood at 69.09 on March 4, 2015. While, the RBI’s reference rate for the Yen stood at 51.70, the reference rate for the Great Britain Pound (GBP) stood at 94.9649. The reference rates are based on 12 noon rates of a few select banks in Mumbai.
