Tracking positive local equity markets, Indian rupee trading higher against dollar on Monday cheering by hopes of major foreign inflows as government announced it was opening up of the aviation and multi-brand retail sectors to more overseas investment. Meanwhile, in a much anticipated move, Reserve Bank of India (RBI) has reduced the cash reserve ratio (CRR) of scheduled banks by 25 basis points from 4.75% to 4.50% of their net demand while it has maintained a status quo on key policy rates, viz. repo and reverse repo. The Indian rupee erased some gains immediately after RBI’s this move which will increase liquidity flow into the economy. Selling of dollar by exporters and banks also supported local unit to an extent.
The partially convertible currency is currently trading at 53.82, stronger by 49 paise from its previous close of 54.31 on Friday. The currency touched a high and low of 53.85 and 53.68 respectively. The Reserve Bank of India's (RBI) reference rate for the dollar stood at Rs 54.73 and for Euro it stood at Rs 71.34 on September 14, 2012. While, the RBI’s reference rate for the Yen stood at 70.55, the reference rate for the Great Britain Pound (GBP) stood at 88.6085. The reference rates are based on 12 noon rates of a few select banks in Mumbai.
| Date | 1US$ | 1GBP |
September 14, 2012 | 54.31 | 88.6085 |
September 13, 2012 | 55.44 | 89.3076 |