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Rupee trading weak against dollar ahead of November inflation data

14 Dec 2012 Evaluate

Tracking weakness in local equity markets, Indian rupee resumed its southward journey and currently trading flat against dollar in the late morning session. Increasing dollar demand from importers was mainly pressurizing local unit to an extent. Meanwhile, investors were not making any strong positions ahead of November inflation data, leading to a possible policy rate cut on December 18. However, government’s measures to push forward economic reforms restricted rupee’s losses. Strengthening of euro against the dollar in the global markets also supported domestic currency to limit losses.

The partially convertible currency is currently trading at 54.46, flat against its previous close on Thursday. The currency has touched a high and low of 54.75 and 54.46 respectively. The Reserve Bank of India's (RBI) reference rate for the dollar stood at Rs 54.23 and for Euro it stood at Rs 70.94 on December 13, 2012. While, the RBI’s reference rate for the Yen stood at 64.86, the reference rate for the Great Britain Pound (GBP) stood at 87.5304. The reference rates are based on 12 noon rates of a few select banks in Mumbai.

Date

1US$

1GBP

December 13, 2012

54.23

87.5304

December 12, 2012

54.27

87.4276

(RBI-reference rate)

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