Indian rupee after commencing the trade on weak note has now pared some of its loss tailing the local equities which bounced back in green after languishing at the bottom in the early deals. The Indian currency lost substantial ground weighed by oil importers' demand for dollars, with movements in the euro eyed in the backdrop of debt worries in the region. The rupee seesawed tracking forward premiums that crashed in early trades as demand for spot dollars surged. India is estimated to owe Iran around $4 billion for its oil imports and domestic oil firms have been aggressively buying dollar to make these payments. On the global front, the euro edged up from lows against major currencies in Asia but was seen vulnerable to renewed selling pressure as worries about the euro zone sovereign debt crisis spread to the region's banking sector.
The partially convertible currency is currently trading at 45.26, weaker by 2 paise from its previous close of 45.24 on Wednesday. It touched a high and low of 45.50 and 45.26. The Reserve Bank of India's reference rate for the dollar stood at 45.20 and for Euro it stood at 64.76 on August 10, 2011. While, the RBI's reference rate for the Yen stood at 58.85 and the reference rate for the Great Britain Pound (GBP) stood at 73.5092. The reference rates are based on 12 noon rates of a few select banks in Mumbai.
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