Indian rupee resumed southward journey on Tuesday as dollar demand from oil importers weighed, which offset gains from foreign fund inflows. Importers started dollar purchases to meet payments ahead of the March 31 financial year-end. However, Brent oil has risen 11.7% this year to $125.31 a barrel, which boosted India’s import costs resulting nastiest fiscal deficit. The rupee rose earlier on speculation that gold imports will slow after the government increased rates on the metal, helping rein in the nation’s current-account deficit. Investors expect central banks intervention in the currency market if there is big volatility.
The partially convertible currency is currently trading at 50.27, weaker by 3 paise from its previous close of 50.24 on Monday. It has touched a high and a low of 50.28 and 50.19 respectively. The Reserve Bank of India's (RBI) reference rate for the dollar stood at Rs 50.1245 and for Euro it stood at Rs 66.0025 on March 19, 2012. While, the RBI's reference rate for the Yen stood at 60.12 the reference rate for the Great Britain Pound (GBP) stood at 79.3721. The reference rates are based on 12 noon rates of a few select banks in Mumbai.
| Date | 1US$ | 1GBP |
March 19, 2012 | 50.12 | 79.3721 |
March 16, 2012 | 50.31 | 79.0468 |
(RBI-Reference Rate)
