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Rupee depreciates against dollar on increasing dollar demand

28 Mar 2012 Evaluate

The Indian rupee depreciated against dollar on Wednesday, on the back of payments for oil importers as traders square off positions ahead of financial year end this week. Poor performance of local stocks also affected the capital inflows and weighed on the rupee. However investors turned cautious after the Federal Reserve chairman said on Tuesday it was too soon to declare victory in the US economic recovery, warning against complacency in policymaking as the outlook brightens. Asian markets edged lower Wednesday following a slip on Wall Street and on profit-taking after the previous day's strong showing. Meanwhile concerns that a spike in US inventories signaled falling demand send oil prices lower.

The partially convertible currency is currently trading at 50.90, weaker by 18 paise from its previous close of 50.72 on Tuesday. It has touched a high and a low of 51.02 and 50.85 respectively. The Reserve Bank of India's (RBI) reference rate for the dollar stood at Rs 50.90 and for Euro it stood at Rs 67.9860 on March 27, 2012. While, the RBI's reference rate for the Yen stood at 61.47 the reference rate for the Great Britain Pound (GBP) stood at 81.2700. The reference rates are based on 12 noon rates of a few select banks in Mumbai.

Date1US$1GBP

March 27, 2012

50.9181.2700

March 26, 2012

51.3181.3658
(RBI-Reference Rate)

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