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Rupee ends weak on stronger dollar demand amidst oil importers

18 Jul 2012 Evaluate

Rupee ended weak against American currency on Wednesday, as fresh dollar demand from banks and importers, weighed on the currency. Indian currency, also depreciated on globally risk averse appetite for emerging markets currencies after Fed Chairman Ben Bernanke despite stating central bank readiness to respond to a slowing economy, abstained from providing details on when the Federal Reserve could start a third round of large-scale bond purchases. Further, gains of Indian equity markets, which were weighed against the sluggish performance of regional counterparts, also deterred the sentiment of home currency.

Finally the rupee ended at 55.50, weaker by 38 paise from its previous close of 55.12 on Tuesday. The currency touched a high and low of 55.54 and 55.02 respectively. The Reserve Bank of India's (RBI) reference rate for the dollar stood at Rs 55.33 and for Euro it stood at Rs 67.9540 on July 18, 2012. While, the RBI’s reference rate for the Yen stood at 70.05, the reference rate for the Great Britain Pound (GBP) stood at 86.5510. The reference rates are based on 12 noon rates of a few select banks in Mumbai.

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