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Rupee depreciates against dollar ahead of central bank’s policy review

29 Oct 2012 Evaluate

After a three-day break due to a local holiday, Indian rupee depreciated against dollar on Monday amid increasing month-end demand for the American currency from oil importers. Investors were waiting for RBI's rate decision on Tuesday, as any rate cut is expected to help rupee gains by improving confidence in the economic outlook and potentially increasing foreign flows into stocks. Meanwhile, euro’s weakness against U.S. dollar as traders await Spain's request for a bailout, also pressurized local unit to an extent.

The partially convertible currency is currently trading at 53.79, weaker by 22 paise from its previous close of 53.57 on Thursday. The currency, so far, has touched a high and low of 53.90 and 53.78 respectively. The Reserve Bank of India's (RBI) reference rate for the dollar stood at Rs 53.63 and for Euro it stood at Rs 69.7455 on October 25, 2012. While, the RBI’s reference rate for the Yen stood at 66.91 the reference rate for the Great Britain Pound (GBP) stood at 86.1780. The reference rates are based on 12 noon rates of a few select banks in Mumbai.

Date1US$1GBP

October 25, 2012

53.63 86.1780

October 23, 2012

53.5885.8129
(RBI-reference rate)

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