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Indian rupee ends weak on Tuesday; upbeat inflation data fails to support

14 Feb 2012 Evaluate

Indian rupee ended weak on Tuesday on strong dollar demand which took place owing to the risk aversion. Adding to the negative milieu, Asian shares and the euro too slipped on Moody's warning of slashing the triple-A ratings of France, Britain and Austria, which reminded investors that Europe is still deeply mired in a debt crisis despite Athens' steps to avoid a disorderly default. However, local shares which surged on the back of January’s inflation data that slowed to its lowest level in more than two years, failed to cast any positive impact on the Indian currency. The wholesale price index, India's main gauge of inflation, rose 6.55 percent in January from a year earlier, its slowest rise since November 2009.

Finally the rupee ended at 49.35, weaker by 14 paise from its previous close of 49.21 on Friday. It has touched a high and a low of 49.42 and 49.20 respectively. The Reserve Bank of India's (RBI) reference rate for the dollar stood at Rs 49.33 and for Euro it stood at Rs 64.8391 on February 14, 2012. While, the RBI's reference rate for the Yen stood at 63.25 the reference rate for the Great Britain Pound (GBP) stood at 77.4101. The reference rates are based on 12 noon rates of a few select banks in Mumbai.

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