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Rupee pares early gains; forex rules eased for exporters

23 Jan 2013 Evaluate

After opening higher, Indian rupee pared some gains and is trading flat against dollar, in the late morning session. Dollar selling by exporters and banks and positive local equity markets supported domestic unit to an extent. Meanwhile, the Reserve Bank of India has reversed earlier restriction imposed by allowing exporters to access the foreign exchange market without having to first exhaust funds in their foreign currency accounts, in order to restrict a fall in the rupee. However, dollar demand from oil importers capped local unit’s gains.

The partially convertible currency is currently trading at 53.79, almost flat from its previous close of 53.80 on Tuesday. The currency has touched a high and low of 53.89 and 53.66 respectively. The Reserve Bank of India's (RBI) reference rate for the dollar stood at Rs 53.51 and for Euro it stood at Rs 71.42 on January 22, 2013. While, the RBI’s reference rate for the Yen stood at 59.98, the reference rate for the Great Britain Pound (GBP) stood at 84.8478. The reference rates are based on 12 noon rates of a few select banks in Mumbai.

Date

1US$

1GBP

January 22, 2013

53.51 84.8478

January 21, 2013

53.87

85.5296

(RBI-reference rate)

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