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Rupee recovers against dollar amid weak local equity markets

01 Jun 2012 Evaluate

Domestic currency recovered from negative start and appreciated against dollar on Friday, despite fall of euro to 2-year low, weak local shares replicating the unsatisfactory Chinese manufacturing data and worsening euro zone debt crisis. However rupee hit a series of record falls in May, as oil importers increased demand for local currency, while it was also affected by worries about Spain’s increasing borrowing costs and expectations that more spending may be needed to support its ailing banks. Meanwhile, investors are expecting central bank’s intervention to gain some strength in rupee.

The partially convertible currency is currently trading at 55.93, stronger by 13 paise from its previous close of 56.06 on Thursday. It has touched a high and low of 56.20 and 55.82 respectively. The Reserve Bank of India's (RBI) reference rate for the dollar stood at Rs 56.42 and for Euro it stood at Rs 69.95 on May 31, 2012. While, the RBI’s reference rate for the Yen stood at 71.57, the reference rate for the Great Britain Pound (GBP) stood at 87.3759. The reference rates are based on 12 noon rates of a few select banks in Mumbai.  

Date1US$1GBP

May 31, 2012

56.4287.38

May 30, 2012

56.0087.48
(RBI-reference rate)

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