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Indian rupee hits one month low amid increase in dollar demand

05 Mar 2012 Evaluate

Indian rupee depreciated to a weakest level in more than a month on Monday against US currency amid dollar demand from importers. Poor performance of the local shares also caused the currency's fall. However Investors are now looking for possible intervention by the central bank to limit further rupee depreciation as it has actively participated in the local currency market over the last few months, selling dollars while simultaneously resorting to a flurry of steps aimed at cutting speculation and improving dollar inflows. Meanwhile weakness in euro and other Asian currencies against the dollar overseas also weighed on the rupee's value.

The partially convertible currency is currently trading at 49.78, weaker by 28 paise from its previous close of 49.50 on Friday. It has touched a high and a low of 49.81 and 49.70 respectively. The Reserve Bank of India's (RBI) reference rate for the dollar stood at Rs 49.35 and for Euro it stood at Rs 65.6263 on March 2, 2012. While, the RBI's reference rate for the Yen stood at 60.61 the reference rate for the Great Britain Pound (GBP) stood at 78.6827. The reference rates are based on 12 noon rates of a few select banks in Mumbai.

Date1US$1GBP

March 2, 2012

49.3578.6827
March 1, 201249.15 78.2490
(RBI-Reference Rate)  

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