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Rupee snaps three days rising rally

04 Jul 2012 Evaluate

Indian rupee pared yesterday’s gains and currently trading lower, as American currency gaining against the euro overseas. However, a positive opening in local stock market capped the losses. Local currency gained about 5% against dollar in last four days on the back of strong foreign fund inflows ahead of government bond investment limit auction. Further, enhanced risk appetite for Indian assets after reassuring statements by policy makers has also supported rupee to come out from lower levels. Meanwhile, euro fell against dollar ahead of European Central Bank policy meeting on July 5.

The partially convertible currency is currently trading at 54.50, weaker by 13 paise from its previous close of on 54.37 Tuesday. It has touched a high and low of 54.61 and 54.40 respectively. The Reserve Bank of India's (RBI) reference rate for the dollar stood at Rs 54.81 and for Euro it stood at Rs 69.06 on July 3, 2012. While, the RBI’s reference rate for the Yen stood at 68.71, the reference rate for the Great Britain Pound (GBP) stood at 86.0392. The reference rates are based on 12 noon rates of a few select banks in Mumbai.

Date1US$1GBP

July 3, 2012

54.81 86.0392

July 2 2012

55.83 87.4074

(RBI-reference rate)

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