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Indian rupee depreciates against dollar on weak local shares

04 Apr 2012 Evaluate

Indian rupee fell against American currency on Wednesday on the back of dollar's gains against other currencies as hopes for further monetary stimulus in the United States waned, prompting traders to cut short-dollar positions and hurting demand for riskier assets like equities. However surge in dollar demand from local oil importers, the biggest buyers of dollars in the domestic currency market, ahead of local market holidays on Thursday and Friday is also seen hurting the rupee. Weak opening in the stock market also put pressure on the rupee.

The partially convertible currency is currently trading at 51.04, weaker by 32 paise from its previous close of 50.72 on Tuesday. It has touched a high and a low of 51.12 and 50.92 respectively. The Reserve Bank of India's (RBI) reference rate for the dollar stood at Rs 50.56 and for Euro it stood at Rs 67.48 on April 3, 2012. While, the RBI's reference rate for the Yen stood at 61.63 the reference rate for the Great Britain Pound (GBP) stood at 81.0498. The reference rates are based on 12 noon rates of a few select banks in Mumbai.

Date1US$1GBP

April 3, 2012

50.5681.0498

March 30, 2012

51.1581.7992
(RBI-Reference Rate)

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