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Rupee loses steam on Thursday

29 Sep 2011 Evaluate

Indian rupee, snapping two day’s gaining trend, lost all its steam on Thursday as concerns over the euro zone's debt looming large, prompted a sell-off in riskier assets like equities, thereby weighing on the local unit, which looked set to post its biggest quarterly loss in at least three years. Investors which turned back to safe havens noting conflicts amongst the European leaders regarding the way to tackle the on-going Euro zone debt crisis mainly dented the sentiment of the Indian currency. On Tuesday, after 7 Euro zone nations stated that private creditors will have to accept larger losses in their Greek bond holdings as compared with the ones that were agreed in July, there were reports coming out overnight that some EU officials stand much against any such move.  Thus, with the risk aversion playing on the fore, the Dollar Index recouped from most of its initial decline. Meanwhile, euro gained on short-covering in volatile, commodity-driven trade after riskier assets bounced off intraday lows on Thursday, however, Europe's Single Common Currency still appeared to be on track to mark its worst quarter since early 2010.

The partially convertible currency is currently trading at 48.90, weaker by 16 paise from its previous close of 48.74 on Wednesday. It touched a high and low of 49.07 and 48.85 respectively. The Reserve Bank of India's reference rate for the dollar stood at 48.91 and for Euro it stood at 66.43 on September 28, 2011. While, the RBI's reference rate for the Yen stood at 63.93 and the reference rate for the Great Britain Pound (GBP) stood at 76.5326. The reference rates are based on 12 noon rates of a few select banks in Mumbai.

Date1US$1GBP
September 28, 201148.91 76.5326
September 27, 201149.1776.6530
RBI-Reference Rate

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