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Rupee strengthens the most in two weeks as risk appetite revisits Dalal Street

24 Oct 2011 Evaluate

Indian rupee after surpassing 50 per dollar level in the previous session strengthened the most in almost two weeks on Monday propelled by the rise in euro and local shares as risk appetite improved after euro zone policy makers appeared closer to a roadmap for tackling Europe's debt crisis. European Union leaders made some progress towards a strategy to fight the euro zone's sovereign debt crisis on Sunday, nearing agreement on bank recapitalization and on how to leverage their rescue fund to try to stop bond market contagion. However, the Indian currency pruned some of its gains tracing local equities which declined in the late hour of trade after traders squared off position ahead of RBI's second quarterly monetary policy review on Tuesday.

Finally the rupee ended at 49.82, stronger by 20 paise from its previous close of 50.02 on Friday. It has touched a high and low of 50.06 and 49.60 respectively. The Reserve Bank of India's reference rate for the dollar stood at 49.87 and for Euro it stood at 69.52 on October 24, 2011. While, the RBI's reference rate for the Yen stood at 65.37 and the reference rate for the Great Britain Pound (GBP) stood at 79.7294. The reference rates are based on 12 noon rates of a few select banks in Mumbai.

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