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Rupee weakens against greenback on political instability

26 Mar 2013 Evaluate

Indian rupee weakened against greenback on Tuesday amid increasing month-end demand for the American currency from importers. Volatile local equity markets on concerns over domestic political stability mainly dragged down the local unit. Meanwhile, Prime Minister's Economic Advisory Council (PMEAC) Chairman C Rangarajan’s statement that India’s Current Account Deficit (CAD) for 2012-13 is likely to be around 5 percent of the GDP, is expected to restrict the rupee’s downside move. Euro’s weakness against dollar, touching lowest level since mid-November also pressurized domestic currency to an extent.

The partially convertible currency is currently trading at 54.30, weaker by 13 paise from its previous close of 54.17 on Monday. The currency touched a high and low of 54.38 and 54.26 respectively. The Reserve Bank of India's (RBI) reference rate for the dollar stood at Rs 54.09 and for Euro it stood at Rs 70.49 on March 25, 2013. While, the RBI’s reference rate for the Yen stood at 57.14, the reference rate for the Great Britain Pound (GBP) stood at 82.4658. The reference rates are based on 12 noon rates of a few select banks in Mumbai.

Date1US$1GBP
March 25, 201354.0982.4658
March 22, 201354.33 82.5566

(RBI-reference rate)

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