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Rupee falls against dollar ahead of Fed meeting

13 Sep 2012 Evaluate

Snapping yesterday’s gains Indian rupee ended lower against dollar on Thursday on the back of continued demand for the American currency by oil importers. Investors were also looking for a special government cabinet meeting later in the day in which a hike in heavily subsidized fuel prices may be discussed. However, euro continued to remain near four-month high ahead of the US Federal Reserve meeting outcome where it is expected to announce more monetary stimulus, which will hurt the dollar.

Finally the rupee ended at 55.43, weaker by 21 paise from its previous close of 55.22 on Wednesday. The currency touched a high and low of 55.49 and 55.30 respectively. The Reserve Bank of India's (RBI) reference rate for the dollar stood at Rs 55.44 and for Euro it stood at Rs 71.62 on September 13, 2012. While, the RBI’s reference rate for the Yen stood at 71.33, the reference rate for the Great Britain Pound (GBP) stood at 89.3076. The reference rates are based on 12 noon rates of a few select banks in Mumbai.

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