Rupee strikes a two-month low on Monday; decline of Euro weighs

23 May 2011 Evaluate

Indian rupee stroked a two-month low on Monday tracking a fall in Euro and Asian currency amidst weak equity market. Strong demand for the US unit from domestic oil refiners, who might be looking to book deliveries after the fall in oil prices, also weighed on the domestic unit. Brent crude oil fell by more than $1 on Monday as investors flocked to the dollar on renewed concerns over the euro zone debt crisis. Meanwhile, the euro fell broadly on Monday and hit a record low against the Swiss franc, hurt by ongoing worries about the potential for debt restructuring by Greece, with market positioning pointing to the chances of a further drop.

The partially convertible Rupee is currently trading at 45.23, weaker by 22 paise from its previous close of 45.01/02 on Friday. It has touched a high and low of 45.28 and a low of 45.15 respectively. The Reserve Bank of India's reference rate for the US dollar stood at 44.93 and for Euro it stood at 64.34 on May 20, 2011. While, the RBI's reference rate for the Yen stood at 54.99 and the reference rate for the Great Britain Pound (GBP) stood at 72.9169. The reference rates are based on 12 noon rates of a few select banks in Mumbai.