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Rupee falls against American currency despite higher equity markets

27 Apr 2012 Evaluate

Local currency is set for a fourth weekly fall as foreign funds pulled money from local assets after Standard & Poor’s cut the nation’s credit-rating outlook. Investors were selling the rupee as the fundamentals may weaken in the short term. However overseas investors sold $277 million more local stocks than they bought in the first three days of the week and pulled $204 million from Indian bonds this month through April 25. Meanwhile higher opening in the equity market were unable to hold rupee’s opening gains. April marks the fourth consecutive month in which the rupee remains the most shorted currency among Asian currencies.

The partially convertible currency is currently trading at 52.67, weaker by 12 paise from its previous close of 52.55 on Thursday. It has touched a high and low of 52.70 and 52.49 respectively. The Reserve Bank of India's (RBI) reference rate for the dollar stood at Rs 52.56 and for Euro it stood at Rs 69.56 on April 26, 2012. While, the RBI's reference rate for the Yen stood at 64.78 the reference rate for the Great Britain Pound (GBP) stood at 85.0271. The reference rates are based on 12 noon rates of a few select banks in Mumbai.

Date1US$1GBP

April 26, 2012

52.5685.0271

April 25, 2012

52.4984.6583
(RBI-reference rate)

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