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Rupee appreciates against dollar on increasing capital inflows

07 Aug 2012 Evaluate

Extending its rising streak, Indian rupee appreciated against American currency on increased capital inflows. Dollar’s weakness against euro helped local unit to extend the rally. Selling of the American currency by exporters also supported the domestic currency. However, sentiment turned in favor of rupee, as Finance Minister P. Chidambaram signaled possible action to stimulate the economy. Meanwhile, euro extended gains against the dollar after rebounding on last week's stronger-than-expected US jobs data.

The partially convertible currency is currently trading at 55.44, stronger by 8 paise from its previous close of 55.52 on Monday. The currency, so far, has touched a high and low of 55.45 and 55.32 respectively. The Reserve Bank of India's (RBI) reference rate for the dollar stood at Rs 55.47 and for Euro it stood at Rs 68.66 on August 6, 2012. While, the RBI’s reference rate for the Yen stood at 70.77, the reference rate for the Great Britain Pound (GBP) stood at 86.6044. The reference rates are based on 12 noon rates of a few select banks in Mumbai.

Date1US$1GBP

August 6, 2012

55.4786.6044

August 3, 2012

56.08 87.0263

(RBI-reference rate) 

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