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Rupee pares early gains against dollar on Thursday

07 Feb 2013 Evaluate

Following a positive opening, Indian rupee slipped marginally on the back of increasing dollar demand from oil importers and strengthening US currency against euro. However, sustained foreign fund flows and positive local equity markets capped the rupee's fall to some extent. Investor’s sentiments were dampened, after government announced that, India's gross domestic product (GDP) is estimated to grow at an annual 5% in the 2012/13 fiscal year. Meanwhile, euro depreciated against greenback as European Central Bank policymakers prepare to meet tomorrow amid political and banking turmoil that threatens to renew the region's sovereign-debt crisis.

The partially convertible currency is currently trading at 53.17, weaker by 1 paisa from its previous close of 53.16 on Wednesday. The currency has touched a high and low of 53.21 and 53.07 respectively. The Reserve Bank of India's (RBI) reference rate for the dollar stood at Rs 53.08 and for Euro it stood at Rs 72.01 on February 6, 2013. While, the RBI’s reference rate for the Yen stood at 56.59, the reference rate for the Great Britain Pound (GBP) stood at 83.1160. The reference rates are based on 12 noon rates of a few select banks in Mumbai.

Date

1US$

1GBP

February 6, 2013

53.08 83.1160

February 5, 2013

53.29

83.9655

(RBI-reference rate)

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