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Rupee depreciates amid dollar strength

05 Nov 2012 Evaluate

Snapping three days gaining streak, Indian rupee depreciated against dollar on increasing demand for American currency from banks and importers. American currency’s gains against the euro and other rivals overseas and volatility in the domestic equity market pressurized local unit to an extent. Investors were looking for more reforms in the winter parliament session and some positive sentiments from euro zone as Greece is likely to receive next tranche of aid from EU/IMF. Meanwhile, euro fell to a three-week low against the dollar, driving the dollar index to a seven-week high.

The partially convertible currency is currently trading at 54.05, weaker by 25 paise from its previous close of 53.80 on Friday. The currency, so far, has touched a high and low of 54.18 and 54.04 respectively. The Reserve Bank of India's (RBI) reference rate for the dollar stood at Rs 53.66 and for Euro it stood at Rs 69.2425 on November 2, 2012. While, the RBI’s reference rate for the Yen stood at 66.85 the reference rate for the Great Britain Pound (GBP) stood at 86.3676. The reference rates are based on 12 noon rates of a few select banks in Mumbai.

Date1US$1GBP

November 2, 2012

53.66 86.3676

November 1, 2012

53.7786.7683

(RBI-reference rate)

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