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Rupee loses steam post touching a 6-week high

14 Jul 2011 Evaluate

Indian rupee after making substantial ground recoiled on Thursday to trade lower impacted by the weak local equities amidst weaker regional counterpart. The Indian currency gained in the early deals to touch a 6-week high level on the back of weak dollar overseas. The U.S dollar was on the run in Asia on Thursday after a ratings warning from Moody's and a hint of further policy easing from the Federal Reserve unleashed a wave of panic selling, much to the relief of the hard-pressed euro. However, local equities which turned negative post Wednesday's triple bomb blasts, spooked the sentiment.

However, some respite came to the market post the release of the monthly inflation numbers which came at 9.44% for the month of June 2011 as compared to 9.06% seen in the previous month. Though India’s India's wholesale price index quickened in the month of June to 9.44% month on month, however, the numbers were below than street expectation as the economists had forecasted a much gloomier picture and a sharper rise to 9.7% based on the recent hike in prices of petroleum products by the government. Meanwhile, halting two consecutive week’s decline, India’s annual inflation in the Food Articles group rose 8.31% in the week ended July 2 from 7.61% in the previous week.

The partially convertible Currency is currently trading at 44.55, weaker by 3 paise from its previous close of 44.52/53 on Thursday. It has touched a high and low of 44.5550 and 44.4425 respectively. The Reserve Bank of India's reference rate for the dollar stood at 44.58 and for Euro it stood at 62.39 on July 13, 2011. While, the RBI's reference rate for the Yen stood at 56.16 and the reference rate for the Great Britain Pound (GBP) stood at 71.0733. The reference rates are based on 12 noon rates of a few select banks in Mumbai.

Date1US$1GBP
July 13,201144.5871.0733
July 12,201144.6870.8749
(RBI-Reference Rate)

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