The Indian rupee appreciated on Thursday on fresh selling of dollars by banks and exporters and tracking the firm equity markets. Though the Indian rupee pared most of its morning gains in the afternoon trade after oil import payments picked up and as the local shares declined as a knee jerk reaction post release of the weekly food inflation which came at four week highs at 8.55% on annual basis during week-ended May 14, picking up pace from an annual rise of 7.47% recorded in the previous week. However, the recovery of the local equity markets and their positive ending gave some respite to the local currency. Meanwhile, the euro advanced to a one-week high against dollar as strong commodities prices and a report that China is interested in buying 'bailout bonds' for Portugal spurred active stop-loss buying of the single European currency.
Finally the Rupee ended at 45.30, stronger by 2 paise from its previous close of 45.32 on Wednesday. It has touched a high and low of 45.33 and 45.22 respectively. The Reserve Bank of India's reference rate for the US dollar stood at 45.29 and for Euro it stood at 64.18 on May 26, 2011. While, the RBI's reference rate for the Yen stood at 55.38 and the reference rate for the Great Britain Pound (GBP) stood at 73.8408. The reference rates are based on 12 noon rates of a few select banks in Mumbai.
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