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Rupee snaps earlier sessions’ gaining streak against dollar

03 Jan 2013 Evaluate

Indian rupee snapped earlier sessions’ gaining streak against U.S. dollar on Thursday amid some short-covering after the recent rally. Appreciation of the American currency against other currencies in overseas markets and increase in dollar demand from the importers pressurized domestic currency to an extent. However, positive local equity markets are limiting local unit’s southward move. Meanwhile, euro slid against U.S. dollar as the initial euphoria over a U.S. deal to avert the fiscal cliff faded, which also affected rupee.

The partially convertible currency is currently trading at 54.42, weaker by 7 paise from its previous close of 54.35 on Wednesday. The currency touched a high and low of 54.52 and 54.39 respectively. The Reserve Bank of India's (RBI) reference rate for the dollar stood at Rs 54.38 and for euro it stood at Rs 72.19 on January 2, 2013. While, the RBI’s reference rate for the Yen stood at 62.32, the reference rate for the Great Britain Pound (GBP) stood at 88.7574. The reference rates are based on 12 noon rates of a few select banks in Mumbai.

Date

1US$

1GBP

January 2, 2013

54.38 88.7574

January 1, 2012

54.83

89.2254

(RBI-reference rate)

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