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Rupee turns weak after muted start on Monday

13 Apr 2015 Evaluate

Indian rupee after making a muted start, lost ground and was trading weak against dollar on Monday on incremental dollar demand by banks and oil importers in view of strength of the American currency overseas against the basket of other major currencies. Additionally, cautiousness ahead of the release of March CPI data also weighed on the sentiment. Nevertheless, gains of local equities on account of better than expected Feb IIP numbers prevented sharper slide of Indian currency. On the macro-front, clocking its fastest pace in nine months, the index for industrial output (IIP) for the month of February came in at 5%, way higher than street expectation of a number of around 3.50% and also higher compared to 2.6% in January mainly on account of splendid growth of capital goods and consumer goods sector. On the global front, euro  was on the defensive on Monday morning, pressurized by the European Central Bank’s stimulus driving interest rates lower in the euro zone and on concerns  over talks between debt strapped Greece and  its creditors over more funding for Athens.

The partially convertible currency is currently trading at 62.40, weaker by 8 paise from its previous close of 62.32 on Friday. The currency touched a high and low of 62.40 and 62.31 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 62.36 and for Euro stood at 66.48 on April 10, 2015. While, the RBI’s reference rate for the Yen stood at 51.74, the reference rate for the Great Britain Pound (GBP) stood at 91.6032. The reference rates are based on 12 noon rates of a few select banks in Mumbai.

Date1US$1GBP
April 10, 201562.36 91.6032
April 09, 201562.25 92.4937

(RBI-Reference Rate)

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