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Rupee extends earlier week’s losses

24 Dec 2012 Evaluate

Extending earlier week’s biggest decline, Indian rupee fell further against the American Currency on Monday on the back of month end dollar demand from the importers. Strengthening of greenback against other regional peers and uncertainty over the U.S. fiscal cliff also contributed to the local unit’s southward journey. However, positive local equity markets were limiting the domestic currency’s losses. Moreover, decline in inflows, because of the holiday season in the U.S also weighed on the investor sentiments. Meanwhile, Euro remained lower versus the dollar amid concern U.S. lawmakers will fail to avert the so-called fiscal cliff of tax increases and spending cuts.

The partially convertible currency is currently trading at 55.13, weaker by 8 paise from its previous close of 55.05 on Friday. The currency has touched a high and low of 55.21 and 55.10 respectively. The Reserve Bank of India's (RBI) reference rate for the dollar stood at Rs 55.08 and for Euro it stood at Rs 72.77 on December 21, 2012. While, the RBI’s reference rate for the Yen stood at 65.50, the reference rate for the Great Britain Pound (GBP) stood at 89.5368. The reference rates are based on 12 noon rates of a few select banks in Mumbai.

Date

1US$

1GBP

December 21, 2012

54.08

89.5368

December 20, 2012

54.84

89.1128

(RBI-reference rate)

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