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Rupee depreciates on higher dollar buying; FII inflows towards bond auction curb losses

21 Jul 2012 Evaluate

Indian rupee, weakened against dollar on Friday, dragged by the high dollar buying by nationalized banks and a weaker euro. However, FII inflows towards bond auction curbed the losses of the Indian currency to some extent. Nevertheless, Indian currency was also pressurized on account of sluggish close of Indian equity markets, while weak regional counterparts, too deterred the sentiment. On the global front, euro eased against the dollar due to worries about Spain's fiscal woes and as investors chased higher yields.

Finally the rupee ended at 55.32/33, weaker by 19 paise from its previous close of 55.13 on Thursday.  The local unit touched a high and low of 55.33 and 55.08 respectively. The Reserve Bank of India's (RBI) reference rate for the dollar stood at Rs 55.15 and for Euro it stood at Rs 67.6030 on July 20, 2012. While, the RBI’s reference rate for the Yen stood at 70.22, the reference rate for the Great Britain Pound (GBP) stood at 86.5768. The reference rates are based on 12 noon rates of a few select banks in Mumbai.

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