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Rupee depreciates against US currency on weak local shares

20 Jul 2012 Evaluate

Hurt by weak local shares, Indian rupee trading is lower against American currency amid increase in dollar demand from defence and oil companies. US currencies strength against euro and other Asian currencies also pressurized rupee. Foreign funds outflow from domestic equity market further influenced the rupee sentiment. However investors are widely waiting for quick government action to relax investment rules and cut subsidies once the elections for the ceremonial post of are out of the way. Meanwhile, euro fell against dollar on Friday on the back of worries about Spain's fiscal woes and recent falls in euro zone money-market rates.

The partially convertible currency is currently trading at 55.23, weaker by 10 paise from its previous close of 55.13 on Thursday. It has touched a high and low of 55.28 and 55.10 respectively. The Reserve Bank of India's (RBI) reference rate for the dollar stood at Rs 55.38 and for Euro it stood at Rs 68.0639 on July 19, 2012. While, the RBI’s reference rate for the Yen stood at 70.47, the reference rate for the Great Britain Pound (GBP) stood at 86.7464. The reference rates are based on 12 noon rates of a few select banks in Mumbai.

Date1US$1GBP

July 19, 2012

55.38 86.7464

July 18, 2012

55.33  86.5510
(RBI-reference rate)

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