The Indian Rupee ended strong for the second consecutive session on Thursday supported by the gains in the equity market and overseas weak dollar. The local equity markets ended higher due to the declining food inflation and good revenue guidance for FY12 from L&T. India’s food inflation numbers continued its downward trajectory for the week ended May 7, 2011. According to the data released by the commerce and industry ministry on Thursday, the food price index declined at 7.47% during the week ending May 7, compared with a corresponding figure of 7.70% a week ago.
However, the domestic unit pared some if its gain as the euro slipped against the dollar and also as oil importers stepped up demand for the greenback in the wake of its weak prices. Meanwhile, the euro dipped against the dollar on Thursday on uncertainty about the implications of a possible Greek debt restructuring, with traders saying policymaker opposition might lead to further declines
Finally the Rupee ended at 44.98, stronger by 8 paise from its previous close of 45.06 on Wednesday. It touched a high and low of 45.04 and 44.92/93 respectively. The Reserve Bank of India's reference rate for the US dollar stood 44.98 and for Euro it stood at 64.16 on May 18, 2011. While, the RBI's reference rate for the Yen stood at 55.11and the reference rate for the Great Britain Pound (GBP) stood at 72.6832. The reference rates are based on 12 noon rates of a few select banks in Mumbai.
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