Supported by positive local shares Indian rupee rebounded against American currency on Monday as government promised to come up with measures to help the battered currency and economy. From this government intervention investors expect rise in interest rates for NRI deposits, cutting down trade deficit and unveiling a bond issue for overseas investors to increase capital inflows to get support for falling rupee. Dollar selling by banks amid expectations that RBI may announce some reforms to boost the local currency also supported rupee to a great extent. However rupee has lost 21% against the dollar over the past 12 months, because of India's wide current and fiscal account deficits amid slowing domestic growth and high inflation. Meanwhile, euro was trading lower against the American currency on Monday, as caution ahead of a European Union summit.
The partially convertible currency is currently trading at 56.45, stronger by 67 paise from its previous close of 57.12 on Friday. It has touched a high and low of 56.78 and 56.38 respectively. The Reserve Bank of India's (RBI) reference rate for the dollar stood at Rs 56.99 and for Euro it stood at Rs 71.57 on June 22, 2012. While, the RBI’s reference rate for the Yen stood at 70.88, the reference rate for the Great Britain Pound (GBP) stood at 88.9743. The reference rates are based on 12 noon rates of a few select banks in Mumbai.
| Date | 1US$ | 1GBP |
June 22, 2012 | 56.99 | 88.9743 |
June 21, 2012 | 56.41 | 88.4462 |
(RBI-reference rate)
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