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Rupee appreciates against US currency on capital inflows

25 Mar 2013 Evaluate

India rupee appreciated against US currency amid continued selling of the dollar by exporters and banks. Increased capital inflows and positive local equity markets supported domestic currency to an extent. Meanwhile, Finance Minister P Chidambaram’s assurance that the government will ease restrictions for foreign institutional investors in government and corporate bonds next month to attract inflows helped local unit to recover from early lows, as it will help to fund a widening current account deficit. Meanwhile, strengthening of euro and other currencies against the dollar also supported the rupee.

The partially convertible currency is currently trading at 54.09, stronger by 24 paise from its previous close of 54.33 on Friday. The currency touched a high and low of 54.16 and 54.05 respectively. The Reserve Bank of India's (RBI) reference rate for the dollar stood at Rs 54.33 and for Euro it stood at Rs 70.10 on March 22, 2013. While, the RBI’s reference rate for the Yen stood at 57.37, the reference rate for the Great Britain Pound (GBP) stood at 82.5566. The reference rates are based on 12 noon rates of a few select banks in Mumbai.

Date1US$1GBP
March 22, 201354.33 82.5566
March 21, 201354.28 82.0593

(RBI-reference rate)

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