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Rupee continues southward journey despite better than expected IIP numbers

10 May 2013 Evaluate

Indian rupee continued its southward journey after touching more than three-week low against greenback in opening deals on the back of increase in demand for American currency from importers. Dollar’s strength against other Asian currencies was hurting local unit to an extent. Higher opening in the domestic equity markets and 2.5% growth in India's annual industrial output measured by index of industrial production (IIP) for the month of March 2013, restricted local unit’s losses. IIP growth was not only higher than the previous month’s figure of 0.6%, but also higher than street’s expectation.

The partially convertible currency is currently trading at 54.49, weaker by 24 paise from its previous close of 54.25 on Thursday. The currency touched a high and low of 54.57 and 54.44 respectively. The Reserve Bank of India's (RBI) reference rate for the dollar stood at Rs 54.24 and for Euro it stood at Rs 71.36 on May 09, 2013. While, the RBI’s reference rate for the Yen stood at 54.95, the reference rate for the Great Britain Pound (GBP) stood at 84.2967. The reference rates are based on 12 noon rates of a few select banks in Mumbai.

Date

1US$

1GBP

May 9, 2013

54.24 84.2967

May 8, 2013

54.1683.8803

(RBI-Reference rate)

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