Indian rupee continued trading lower against American currency on the back of increased demand for the US currency from importers. Dollar's gains against the euro overseas also pressurized the local currency but a higher opening in equity market capped losses. However local currency has fallen by over 6% against the greenback over the last couple of months and if the RBI sells dollar to stem further falls in liquidity, system liquidity will slip further into deficit. The RBI is likely to buy government bonds to neutralize the liquidity impact of dollar sales. Meanwhile euro touched its strongest level in two weeks against the US dollar, and also strengthened against the Japanese yen as governments committed more money to the IMF to help it to protect the world economy from Europe’s deepening debt crisis.
The partially convertible currency is currently trading at 52.17, stronger by 9 paise from its previous close of 52.08 on Friday. It has touched a high and low of 52.20 and 52.03 respectively. The Reserve Bank of India's (RBI) reference rate for the dollar stood at Rs 51.99 and for Euro it stood at Rs 68.39 on April 20, 2012. While, the RBI's reference rate for the Yen stood at 63.70 the reference rate for the Great Britain Pound (GBP) stood at 83.5398. The reference rates are based o n 12 noon rates of a few select banks in Mumbai.
| Date | 1US$ | 1GBP |
April 20, 2012 | 51.99 | 83.5398 |
April 19, 2012 | 51.89 | 83.1845 |
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