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Indian rupee hits two-month low against dollar tracking euro’s weakness

21 Nov 2012 Evaluate

After opening lower, Indian rupee extended early losses and touched two-month low against dollar on Wednesday amid increasing demand for dollar from importers and banks. Investor’s sentiments were dampened over Greece's fiscal problems and U.S. fiscal cliff, which affected domestic currency to a great extent. Strengthening of the greenback against other currency overseas also pressurized local unit. However, higher opening in the stock market restricted the rupee's losses. Meanwhile, euro extended fall against dollar following comments from Luxembourg's finance minister that a decision on whether to release the next tranche of bailout funds to Greece isn't imminent.

The partially convertible currency is currently trading at 55.23, weaker by 14 paise from its previous close of 55.09 on Tuesday. The currency touched a high and low of 55.37 and 55.13 respectively. The Reserve Bank of India's (RBI) reference rate for the dollar stood at Rs 54.91 and for Euro it stood at Rs 70.23 on November 20, 2012. While, the RBI’s reference rate for the Yen stood at 67.55 the reference rate for the Great Britain Pound (GBP) stood at 87.3838. The reference rates are based on 12 noon rates of a few select banks in Mumbai.

Date1US$1GBP

November 20, 2012

54.91 87.3838

November 19, 2012

54.9687.4957
(RBI-reference rate)

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