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Rupee made a bounce back on dollar selling

11 Dec 2012 Evaluate

Indian rupee made a good bounce back on Tuesday on fresh selling of dollars by banks and exporters due to lower dollar in overseas and fund inflows from some IPOs. The domestic currency initially got the support of the equity markets, which moved higher on hopes of rate cut by RBI in its upcoming policy, though the equity markets pared their gains in last and weighed down on the sentiments of rupee, however rupee recovered in last due to dollar weakness overseas. In the global markets the euro edged higher buoyed by a pick-up in German confidence indicators, recovering from losses notched after Italian Prime Minister Mario Monti's decision to step down.

Finally the rupee ended at 54.27, stronger by 23 paise from its previous close of 54.50 on Monday. The currency touched a high and low of 54.45 and 54.25 respectively.The Reserve Bank of India's (RBI) reference rate for the dollar stood at Rs 54.31/32 and for Euro it stood at Rs 70.36 on December 11, 2012. While, the RBI’s reference rate for the Yen stood at 65.98, the reference rate for the Great Britain Pound (GBP) stood at 87.3619. The reference rates are based on 12 noon rates of a few select banks in Mumbai.

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