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Rupee recovers against dollar after initial losses

01 Oct 2012 Evaluate

Indian rupee erased all early losses and recovered against dollar, following lower opening on Monday. Foreign funds inflows and dollar selling by banks and other importers supported the local unit to an extent. Domestic currency has gained over 250 paise in the past fortnight on the back of government’s reforms, which boosted the market sentiments. However, euro hit three-week low in early Asian trading on Monday, as an audit of Spain's banks failed to control worries about the country's progress towards a bailout needed to shore up its public finances.

The partially convertible currency is currently trading at 52.77, stronger by 11 paise from its previous close of 52.88 on Friday. The currency, so far, has touched a high and low of 53.00 and 52.71 respectively. The Reserve Bank of India's (RBI) reference rate for the dollar stood at Rs 52.69 and for Euro it stood at Rs 68.1485 on September 28, 2012. While, the RBI’s reference rate for the Yen stood at 68.00 the reference rate for the Great Britain Pound (GBP) stood at 85.7117. The reference rates are based on 12 noon rates of a few select banks in Mumbai.

Date1US$1GBP

September 28, 2012

52.6985.7117

September 27, 2012

53.2586.2332
(RBI-reference rate)

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