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Rupee depreciates on dollar’s strength overseas

25 May 2015 Evaluate

Indian rupee was trading weak against dollar on fresh dollar demand by state run banks and oil importers in view of strength of American currency against the basket of other major currencies mainly on account of prospects of sooner-than-expected U.S. rate hikes, which reduced the appeal of emerging markets assets. Besides, negative local equities also added to the pessimistic environment. On the global front, dollar marched to a two month high versus the yen on Monday and carved fresh ground against other major currencies after stronger than expected underlying US inflation supported the Federal Reserve’s case for a rate hike later this year.

The partially convertible currency is currently trading at 63.62, weaker by 11 paise from its previous close of 63.51 on Friday. The currency touched a high and low of 63.67 and 63.59 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 63.57 and for Euro stood at 70.92 on May 22, 2015. While, the RBI’s reference rate for the Yen stood at 52.66, the reference rate for the Great Britain Pound (GBP) stood at 99.6694. The reference rates are based on 12 noon rates of a few select banks in Mumbai.

Date1US$1GBP
May 22, 201563.57 99.6694
May 21, 201563.70 98.9197

(RBI-Reference Rate)

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