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Rupee tumbles to a six week low level; concludes past 50 against dollar

06 Mar 2012 Evaluate

Indian rupee dipping to a six week low level, weakened past 50 against dollar on Tuesday as unfolding state election results raised question about the Congress' ability to revive stalled reforms process, a key driver for continued strong foreign capital inflow. Further, a fall in local equities amidst weaker regional counterparts also weighed on the sentiment. Investor appetite for risk went for a toss across the globe due to concerns over slowing economic growth in China and Europe alongside risks of Greece failing to complete a debt restructuring deal.

Finally the rupee ended at 50.37, weaker by 52 paise from its previous close of 49.85 on Monday. It has touched a high and a low of 50.37 and 49.93 respectively. The Reserve Bank of India's (RBI) reference rate for the dollar stood at Rs 50.0265 and for Euro it stood at Rs 66.0203 on March 6, 2012. While, the RBI's reference rate for the Yen stood at 61.39 the reference rate for the Great Britain Pound (GBP) stood at 79.3170. The reference rates are based on 12 noon rates of a few select banks in Mumbai.

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