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Rupee extends early losses on IIP numbers

11 May 2012 Evaluate

Hurt by weakness in the local equity markets rupee depreciated against American currency in early trade on Friday amid dollar's gains against euro and Asian currencies overseas. However rupee extended falls after factory output unexpectedly contracted in March from a year earlier. March IIP data came at -3.5% with the capital goods segment contracting the most at -21.3%. The investors are waiting for the central banks next move to limit the fall in rupee as earlier days RBI’s intervention was not able to pull local currency in a great way.

The partially convertible currency is currently trading at 53.58, weaker by 15 paise from its previous close of 53.43 on Thursday. It has touched a high and low of 53.61 and 53.42 respectively. The Reserve Bank of India's (RBI) reference rate for the dollar stood at Rs 53.34 and for Euro it stood at Rs 69.07 on May 10, 2012. While, the RBI's reference rate for the Yen stood at 66.93 the reference rate for the Great Britain Pound (GBP) stood at 86.1081. The reference rates are based on 12 noon rates of a few select banks in Mumbai.

Date1US$1GBP

May 10, 2012

53.34 86.11

May 9, 2012

53.46 86.27
(RBI-reference rate)

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