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Rupee continues losing streak against US currency

23 Jul 2012 Evaluate

Hurt by weak domestic local shares Indian rupee depreciated to a one-week low against American currency, on Monday as euro fell to lowest amid worries that Spain may need a full-fledged bailout. Strengthening of dollar against other overseas currencies also pressurized rupee to a great extent. Investors are now waiting for some positive triggers from quarterly policy review by the Reserve Bank on July 31, 2012.  However, there are little expectations of any policy rate cuts by the central bank, given the persistently high inflation.

The partially convertible currency is currently trading at 55.84, weaker by 52 paise from its previous close of 55.32 on Friday. It has touched a high and low of 55.85 and 55.62 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.

Date1US$1GBP

July 20, 2012

55.15 86.5768

July 19, 2012

55.38  86.7464
(RBI-reference rate)

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