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Rupee pares early gains on policy concerns

22 Nov 2012 Evaluate

After opening marginally higher, Indian rupee erased all early gains and currently trading lower against dollar amid increasing demand for US currency by importers. However, positive opening in the local equity market and strengthening of euro and yen against the American currency overseas restricted domestic currencies downward move. Moreover, rupee also got pressurized with concerns that whether the government will be able to get lawmakers’ approval for policy changes announced this quarter in the winter session of parliament, which begun today.

The partially convertible currency is currently trading at 55.15, weaker by 4 paise from its previous close of 55.11 on Wednesday. The currency touched a high and low of 55.18 and 55.01 respectively. The Reserve Bank of India's (RBI) reference rate for the dollar stood at Rs 55.20 and for Euro it stood at Rs 70.42 on November 21, 2012. While, the RBI’s reference rate for the Yen stood at 67.39 the reference rate for the Great Britain Pound (GBP) stood at 87.7913. The reference rates are based on 12 noon rates of a few select banks in Mumbai.

Date1US$1GBP

November 21, 2012

55.2087.7913

November 20, 2012

54.9187.3838
(RBI-reference rate)

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