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Rupee pares early gains as IIP contracts by 0.4%

12 Nov 2012 Evaluate

After opening higher, Indian rupee erased all its early gains and is trading weaker against dollar in the late morning session. Meanwhile, India's annual industrial output growth measured by index of industrial production (IIP), witnessed contraction of 0.4% at 163.6 for the month of September 2012 against the growth figure of 2.7% in the previous month, which was the main cause for depreciation in the local unit. With this shocking IIP numbers Reserve Bank of India will not be able to cut key interest in its next monetary policy. On the global front, euro recovered against dollar on Monday after Greece’s ruling coalition secured enough votes in parliament on Sunday to approve the 2013 budget law.

The partially convertible currency is currently trading at 54.83, weaker by 8 paise from its previous close of 54.75 on Friday. The currency, so far, has touched a high and low of 54.86 and 54.61 respectively. The Reserve Bank of India's (RBI) reference rate for the dollar stood at Rs 54.30 and for Euro it stood at Rs 69.42 on November 9, 2012. While, the RBI’s reference rate for the Yen stood at 68.31 the reference rate for the Great Britain Pound (GBP) stood at 86.9685. The reference rates are based on 12 noon rates of a few select banks in Mumbai.

Date1US$1GBP

November 9, 2012

54.30 86.9685

November 8, 2012

54.4487.0010
(RBI-reference rate)

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