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Rupee endures southward journey on weak outlook for capital inflows

29 Mar 2012 Evaluate

The Indian rupee continued depreciating against dollar on Thursday as weak economic data from the United States and China added to the clouded outlook for capital inflows caused by proposed changes in Indian tax laws. However foreign brokerages were complaining the recent provisions to tax indirect investments and combat tax evasion, saying they are couched in ambiguous language and could also be used to target overseas market investors, risking a sell-off in markets. Dollar increase against the euro and other currencies overseas, strong month-end demand for the American currency from oil importers mainly weighed on the rupee sentiment. A weak opening in the equity market also impacted the rupee sentiment.

The partially convertible currency is currently trading at 51.15, weaker by 36 paise from its previous close of 50.79 on Wednesday. It has touched a high and a low of 51.23 and 51.02 respectively. The Reserve Bank of India's (RBI) reference rate for the dollar stood at Rs 50.91 and for Euro it stood at Rs 67.8500 on March 28, 2012. While, the RBI's reference rate for the Yen stood at 61.52 the reference rate for the Great Britain Pound (GBP) stood at 81.2134. The reference rates are based on 12 noon rates of a few select banks in Mumbai.

Date1US$1GBP

March 28, 2012

50.9281.2134

March 27, 2012

50.9181.2700
(RBI-Reference Rate)

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