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Rupee depreciates to two month low to settle past psychological ‘55/$’ level

17 Nov 2012 Evaluate

Indian rupee, after taking breather in the previous trading session, depreciated to two months low and settled past psychological ‘55/$’ level on Friday. Increased demand for American currency from importers, besides, weakening of other Asian currencies against the dollar in overseas markets mainly pressurized the local unit. Further, sharp plunge of local equities also added to the pessimism. Indian currency, extended its losing streak to a third week, as investors remained cautious on risk assets ahead of a key euro-group meeting and worries over the US 'fiscal cliff'. On the global front, euro struggled on Friday on persistent concerns about Greece's fiscal problems and Europe's stagnant economy.

Finally the rupee ended at 55.17, weaker by 47 paise from its previous close of 54.70 on Thursday. The currency touched a high and low of 54.84 and 55.20 respectively. The Reserve Bank of India's (RBI) reference rate for the dollar stood at Rs 54.99 and for Euro it stood at Rs 70.22 on November 16, 2012. While, the RBI’s reference rate for the Yen stood at 67.88 the reference rate for the Great Britain Pound (GBP) stood at 87.2110. The reference rates are based on 12 noon rates of a few select banks in Mumbai.

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