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Rupee depreciates against dollar on risk aversion

11 Apr 2012 Evaluate

Indian rupee depreciated against American currency on Wednesday as investors trim down their risk of holdings in emerging currencies and equities on wobbly global growth prospects. Dollar gains against euro overseas and increased demand for the US currency from importers with capital outflows, mainly weighed on the rupee. Poor performance of local equity markets also pressurized the rupee. Investors were looking at central bank for any intervention. However rupee extended losses on non-deliverable forward (NDF) arbitrage buying.

The partially convertible currency is currently trading at 51.49, weaker by 2 paise from its previous close of 51.47, on Wednesday. It has touched a high and a low of 51.6375 and 51.4650 respectively. The Reserve Bank of India's (RBI) reference rate for the dollar stood at Rs 51.20 and for Euro it stood at Rs 67.15 on April 10, 2012. While, the RBI's reference rate for the Yen stood at 63.00 the reference rate for the Great Britain Pound (GBP) stood at 81.5014. The reference rates are based on 12 noon rates of a few select banks in Mumbai.

Date1US$1GBP

April 10, 2012

51.2081.5014

April 9, 2012

51.2781.3809
(RBI-Reference Rate) 

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