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Indian rupee hits two week low on heavy dollar demand

21 Mar 2012 Evaluate

The Indian rupee struck two-week low against dollar as investors' risk appetite dampened after fresh worries about China's economic slowdown. Meanwhile heavy demand for dollars from oil importers and lower shares raised foreign fund outflow concerns. However brent crude edged towards $125 a barrel, rebounding from sharp losses a day earlier, as lower-than-expected US crude stocks and a weaker dollar offset the prospect of top exporter Saudi Arabia ramping up supply.

The partially convertible currency is currently trading at 50.56, weaker by 16 paise from its previous close of 50.40 on Tuesday. It has touched a high and a low of 50.67 and 50.51 respectively. The Reserve Bank of India's (RBI) reference rate for the dollar stood at Rs 50.2545 and for Euro it stood at Rs 66.5226 on March 20, 2012. While, the RBI's reference rate for the Yen stood at 60.25 the reference rate for the Great Britain Pound (GBP) stood at 79.7639. The reference rates are based on 12 noon rates of a few select banks in Mumbai.

Date1US$1GBP

March 20, 2012

50.2579.7639

March 19, 2012

50.1279.3721
(RBI-Reference Rate)

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