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Rupee appreciates against dollar on better than expected IIP numbers

12 Dec 2012 Evaluate

After opening flat, Indian rupee has moved higher against dollar amid increased capital inflows from Bharti Infratel IPO and expected dollar sale by state miner NDMC. Moreover, better than expected industrial production (IIP) numbers has supported the domestic currency to some extent. India’s annual industrial output growth measured by index of IIP expanded by robust 8.2% at 171.3 for the month of October 2012, against contraction of 0.4% in the previous month. American currency’s weakness against euro overseas along with higher opening in the equity market also helped local unit to hold gains.

The partially convertible currency is currently trading at 54.20, stronger by 7 paise from its previous close of 54.27 on Tuesday. The currency has touched a high and low of 54.29 and 54.17 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.

Date

1US$

1GBP

December 11, 2012

54.31

87.3619

December 10, 2012

54.34

87.0888

(RBI-reference rate)

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