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Rupee erases early losses amid dollar selling

20 Mar 2013 Evaluate

After opening lower, Indian rupee erased early losses and recovered marginally against dollar in the late morning session on Wednesday, amid dollar selling by some banks. Weak local equities, following withdrawal of support by DMK to the UPA government restricted domestic units up move. Increasing dollar demand from oil importers and greenback’s gain against other currencies overseas were also pressurizing rupee to an extent. Meanwhile, euro’s weakness against the American currency after Cyprus Parliament’s rejection of bailout terms seemed to threaten default or even expulsion from the Euro Zone, also weighed on rupee.

The partially convertible currency is currently trading at 54.35, stronger by 2 paise from its previous close of 54.37 on Tuesday. The currency touched a high and low of 54.53 and 54.34 respectively. The Reserve Bank of India's (RBI) reference rate for the dollar stood at Rs 54.26 and for Euro it stood at Rs 70.21 on March 19, 2013. While, the RBI’s reference rate for the Yen stood at 56.87, the reference rate for the Great Britain Pound (GBP) stood at 81.9352. The reference rates are based on 12 noon rates of a few select banks in Mumbai.

Date1US$1GBP
March 19, 201354.26 81.9352
March 18, 201354.29 81.9394

(RBI-reference rate)

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