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Rupee trades weak against dollar amid sluggish equity markets

08 Nov 2012 Evaluate

Tracking weakness in local equity markets, India rupee plunged against dollar as investors were worried about crisis looming over the US and European economy post US presidential election, which made American currency a safe haven. Dollar’s strengthening against the euro overseas and dollar demand by the importers was pressurizing local unit to an extent. Meanwhile, euro fell against dollar on Thursday ahead of European Central Bank meeting, which will be next key trading peg after the US presidential election.

The partially convertible currency is currently trading at 54.48, weaker by 28 paise from its previous close of 54.20 on Wednesday. The currency, so far, has touched a high and low of 54.66 and 54.43 respectively. The Reserve Bank of India's (RBI) reference rate for the dollar stood at Rs 54.25 and for Euro it stood at Rs 69.83 on November 7, 2012. While, the RBI’s reference rate for the Yen stood at 67.77 the reference rate for the Great Britain Pound (GBP) stood at 87.0039. The reference rates are based on 12 noon rates of a few select banks in Mumbai.

Date1US$1GBP

November 7, 2012

54.2587.0039

November 6, 2012

54.5987.3091
(RBI-reference rate)

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