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Rupee surrenders all early gains on fresh dollar demand

18 May 2015 Evaluate

Indian rupee, after making a strong start gave away all its gain and was trading weak against dollar on Monday tailing fresh dollar demand from banks and oil importers. Capital outflows, in small lots also weighed on the rupee, however positive local equities restricted the fall of rupee to some extent. Sentiment to some extent also took a hit after commerce ministry data revealed that India's foreign trade deficit though narrowed by 6.8% in April to $10.99 billion from $11.79 billion in the previous month, but was higher by 9% when compared with $10.09 billion trade deficit in April 2014. On the global front, dollar languished around a three month low against the euro in early Asian trading on Monday after downbeat US economic data bolstered expectations that the Federal Reserve will wait longer to raise US interest rates.

The partially convertible currency is currently trading at 63.54, weaker by 3 paise from its previous close of 63.51 on Friday. The currency touched a high and low of 63.58 and 63.46 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 63.57 and for Euro stood at 72.37 on May 15, 2015. While, the RBI’s reference rate for the Yen stood at 53.20, the reference rate for the Great Britain Pound (GBP) stood at 100.2956. The reference rates are based on 12 noon rates of a few select banks in Mumbai.

Date1US$1GBP
May 15, 201563.57 100.2956
May 14, 201563.83100.6470

(RBI-Reference Rate)

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