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Rupee hits new four-month low against dollar

03 May 2012 Evaluate

Hurt by lower opening in the domestic equity market Indian rupee touched a new four-month low against dollar on Thursday, tracking losses in Asian currencies. A faltering euro on concerns about the strength of a global recovery and dollar demand by the oil importers put pressure on the local currency. Meanwhile investors were doubtful about their Indian holdings because the weakness in the rupee does not appear to be just a short-term concern with the huge trade deficits and high inflation. However suspected Reserve Bank intervention may help the currency recoup some losses.

The partially convertible currency is currently trading at 53.23, weaker by 28 paise from its previous close of 52.95 on Wednesday. It has touched a high and low of 53.27 and 53.12 respectively. The Reserve Bank of India's (RBI) reference rate for the dollar stood at Rs 52.93 and for Euro it stood at Rs 69.94 on May 2, 2012. While, the RBI's reference rate for the Yen stood at 65.87 the reference rate for the Great Britain Pound (GBP) stood at 85.8533. The reference rates are based on 12 noon rates of a few select banks in Mumbai.

Date1US$1GBP

May 2, 2012

52.9385.8533

April 30, 2012

52.5185.4935
(RBI-reference rate)

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