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Rupee depreciates against dollar on increasing dollar demand

08 Aug 2012 Evaluate

Indian rupee depreciated against American currency on the back of increasing dollar demand from oil importers and banks. Some short covering after three successive sessions of gains was also responsible for rupee’s fall. However, euro gained against dollar on Wednesday, supported by continued hopes for further action by the European Central Bank to lower the borrowing costs of Spain and Italy.

The partially convertible currency is currently trading at 55.11, weaker by 4 paise from its previous close of 55.07 on Tuesday. The currency, so far, has touched a high and low of 55.21 and 55.02 respectively. The Reserve Bank of India's (RBI) reference rate for the dollar stood at Rs 55.49 and for Euro it stood at Rs 68.69 on August 7, 2012. While, the RBI’s reference rate for the Yen stood at 70.92, the reference rate for the Great Britain Pound (GBP) stood at 86.3961. The reference rates are based on 12 noon rates of a few select banks in Mumbai.

Date1US$1GBP

August 7, 2012

55.4986.3961

August 6, 2012

55.47 86.6044

(RBI-reference rate) 

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