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Rupee depreciates amid increasing dollar demand

22 Mar 2013 Evaluate

Snapping earlier session’s gains, Indian rupee depreciated against greenback on Friday amid increasing dollar demand from oil importers. Volatile Indian equity markets also pressurized local unit to an extent. Investors were expecting dollar inflows from share auction by the government to sell 5.8% stake in state-owned steelmaker Steel Authority of India, which is limiting the rupee’s downside. Meanwhile, strengthening of euro and yen against the dollar overseas is also helping the rupee to restrict losses.

The partially convertible currency is currently trading at 54.36, weaker by 8 paise from its previous close of 54.28 on Thursday. The currency touched a high and low of 54.37 and 54.27 respectively. The Reserve Bank of India's (RBI) reference rate for the dollar stood at Rs 54.28 and for Euro it stood at Rs 70.22 on March 21, 2013. While, the RBI’s reference rate for the Yen stood at 56.71, the reference rate for the Great Britain Pound (GBP) stood at 82.0593. The reference rates are based on 12 noon rates of a few select banks in Mumbai.

Date1US$1GBP
March 21, 201354.28 82.0593
March 20, 201354.37 81.0700

(RBI-reference rate)

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