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Rupee turns lower despite a good start

21 May 2012 Evaluate

Indian rupee after bouncing back on Monday morning from its record lows has again lost its momentum and was trading weaker. Initially there was gain in the domestic currency, tracking upmoves in other Asian currencies after G8 leaders over the weekend pledged keeping Greece in the eurozone and vowed to take all steps needed to combat financial turmoil in the region. But the dollar demand on the domestic front has once again pulled the rupee on backfoot.

The partially convertible currency is currently trading at 54.69, weaker by 27 paise from its previous close of 54.42/44 on Friday. The Reserve Bank of India's (RBI) reference rate for the dollar stood at Rs 54.87 and for Euro it stood at Rs 69.48 on May 18, 2012. While, the RBI's reference rate for the Yen stood at 69.21 the reference rate for the Great Britain Pound (GBP) stood at 86.4646. The reference rates are based on 12 noon rates of a few select banks in Mumbai.

Date1US$1GBP

May 18, 2012

54.87 86.46

May 17, 2012

54.3886.56
(RBI-reference rate)

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