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Indian rupee plunges to lowest level since January end

06 Mar 2012 Evaluate

The Indian rupee persisted southward journey against dollar on Tuesday as unfolding state election results raised doubt about the federal government's ability to stimulate stalled reforms process, which is important for continued strong foreign capital inflow. Robust dollar demand for oil and defense payments and volatile equity markets were further pushing local currency lower. However, investors hope that the local currency to find support from dollar sales by exporters and possibly the Reserve Bank of India, whose policy is to smoothen sharp volatility in the rupee.

The partially convertible currency is currently trading at 49.98, weaker by 13 paise from its previous close of 49.85 on Monday. It has touched a high and a low of 50.04 and 49.94 respectively. The Reserve Bank of India's (RBI) reference rate for the dollar stood at Rs 49.7958 and for Euro it stood at Rs 65.7392 on March 5, 2012. While, the RBI's reference rate for the Yen stood at 61.27 the reference rate for the Great Britain Pound (GBP) stood at 78.7919. The reference rates are based on 12 noon rates of a few select banks in Mumbai.

Date1US$1GBP

March 5, 2012

49.8078.7919
March 2, 201249.3578.6827
(RBI-Reference Rate)  

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