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Rupee concludes weaker for third consecutive session on increased dollar demand

22 Nov 2012 Evaluate

Indian rupee, concluded weaker for third consecutive session on Thursday due to increased demand for US currency by importers in absence of major dollar inflows due to a holiday in the United States. The local unit also got dented with reports, which estimated country’s fiscal deficit reaching 5.5% to 5.6% of GDP in the financial year to end March, forcing the government to borrow up to Rs 40,000 crore extra from the market. However, positive local equities, to some extent capped the weakness of Indian currency. On the global front, euro extended its gains against a weaker yen on Thursday, hitting its highest since early May on expectations that a Greek funding deal would eventually be agreed and Japan would ease monetary policy further.

Finally the rupee ended at 55.21, weaker by 10 paise from its previous close of 55.11 on Wednesday. The currency touched a high and low of 55.27 and 55.01 respectively. The Reserve Bank of India's (RBI) reference rate for the dollar stood at Rs 55.15 and for Euro it stood at Rs 70.85 on November 22, 2012. While, the RBI’s reference rate for the Yen stood at 66.89 the reference rate for the Great Britain Pound (GBP) stood at 88.0314. The reference rates are based on 12 noon rates of a few select banks in Mumbai.

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