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Rupee depreciates amid increasing dollar demand

07 May 2013 Evaluate

Indian rupee depreciated against dollar on Tuesday on the back of increasing demand for American currency by oil importers amid rise in crude oil prices. Dollar’s strength against other overseas currencies pressurized local unit to an extent. However, positive local equity markets and capital inflows capped some losses of domestic unit. Meanwhile, investors are waiting for the inflows related to some recent corporate deals, particularly Qatar's $1.26 billion investment in Indian telecommunication company Bharti Airtel, which is likely to provide some support to the rupee.

The partially convertible currency is currently trading at 54.25, weaker by 7 paisa from its previous close of 54.18 on Monday. The currency touched a high and low of 54.36 and 54.23 respectively. The Reserve Bank of India's (RBI) reference rate for the dollar stood at Rs 53.94 and for Euro it stood at Rs 70.72 on May 06, 2013. While, the RBI’s reference rate for the Yen stood at 54.36, the reference rate for the Great Britain Pound (GBP) stood at 84.0317. The reference rates are based on 12 noon rates of a few select banks in Mumbai.

Date

1US$

1GBP

May 6, 2013

53.94 84.0317

May 3, 2013

53.95 83.8075

(RBI-Reference rate)

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