Indian rupee ended substantially weaker on Monday despite strong start of Indian equity markets in the holiday shortened week. Dollar demand from oil importers mainly ate into the gains of Indian currency. However, Indian currency lost substantially ground on signs that the U.S. economic recovery was losing momentum, which in turn fuelled the hopes of further monetary easing by the Federal Reserve. Meanwhile, the plunge of American greenback to a two month low level, by the close of the session, also failed to cast any impact on the beleaguered Indian currency, which is currently reeling under ballooning trade deficit concerns, with qualms over qualms over foreign selling on the back of a controversial set of proposed tax rules, weighing in investor’s sentiment.
Finally the rupee ended at 52.74, weaker by 20 paise from its previous close of 52.54 on Friday. It has touched a high and low of 52.75 and 52.43 respectively. The Reserve Bank of India's (RBI) reference rate for the dollar stood at Rs 52.51 and for Euro it stood at Rs 69.61 on April 30, 2012. While, the RBI's reference rate for the Yen stood at 65.64 the reference rate for the Great Britain Pound (GBP) stood at 85.4935. The reference rates are based on 12 noon rates of a few select banks in Mumbai.
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