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Rupee snaps two day's winning streak; end off day's low tracing positive local equities

29 Sep 2011 Evaluate

Indian rupee, snapping two day’s gaining trend, lost all its steam on Thursday on concerns that investors would step up sales of emerging-market assets as Europe’s policy makers struggle to stem the region’s debt crisis. However, the Indian currency recovered from the day's lows on Thursday as a rebound in local shares and a more than 1 percent rise in the euro boosted sentiment, with traders awaiting the outcome of the crucial German vote for cues. Meanwhile, the euro rose against the dollar on Thursday as the German parliament approved the euro zone rescue fund’s new powers, though scepticism over the lack of a comprehensive plan to deal with the region’s debt crisis was seen to be putting check on gains.

Finally the rupee ended at 48.96, weaker by 22 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 48.92 and for Euro it stood at 66.44 on September 29, 2011. While, the RBI's reference rate for the Yen stood at 63.90 and the reference rate for the Great Britain Pound (GBP) stood at 76.5192. The reference rates are based on 12 noon rates of a few select banks in Mumbai.

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