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Indian rupee hits over one-month low against dollar

13 May 2013 Evaluate

Indian rupee extended losses after touching a fresh over one-month low against greenback in early trade amid appreciation of the US currency against other currencies in the global markets. Weak local equity markets amid increasing demand for dollar pressurized domestic unit to an extent. Meanwhile, India’s annual consumer price index (CPI) inflation slowed for the second straight month in April to 9.39%, against 10.39% in March, however failed to support rupee. The currency sentiment was dampened by selling in commodities that was triggered by a strong dollar, on the back of growing confidence in the US economy.

The partially convertible currency is currently trading at 54.87, weaker by 8 paise from its previous close of 54.79 on Friday. The currency touched a high and low of 55.01 and 54.84 respectively. The Reserve Bank of India's (RBI) reference rate for the dollar stood at Rs 54.54 and for Euro it stood at Rs 71.10 on May 10, 2013. While, the RBI’s reference rate for the Yen stood at 53.97, the reference rate for the Great Britain Pound (GBP) stood at 84.1900. The reference rates are based on 12 noon rates of a few select banks in Mumbai.

Date

1US$

1GBP

May 10, 2013

54.54 84.1900

May 9, 2013

54.24 84.2967

(RBI-Reference rate)

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