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Rupee snaps six consecutive sessions’ depreciating streak to end strong on Monday

27 May 2013 Evaluate

Indian rupee, erasing all the early losses, ended strong on Monday, on account of sharp rally of local equities which offset the impact seen on account of month end dollar demand from oil refiners and other importers. Additionally, dollar’s broad losses against major currencies, also aided the local unit in snapping its six consecutive sessions’ depreciating streak. Nevertheless, January-March quarter economic growth data due on May 31 will be the key trigger for the currency, with investors eyeing whether the economy gained any traction after the government's reform measures and the rate cuts by the central bank. On the global front, dollar lost ground against the yen on Monday as another steep fall in Japanese equities prompted investors to unwind their dollar hedges and head for bonds, there prolonging a trend seen on last Thursday that produced the pair's biggest weekly drop in a year.

Finally the rupee ended at 55.57, stronger by 7 paise from its previous close of 55.64 on Friday. The currency touched a high and low of 55.76 and 55.52 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at Rs 55.61 and for Euro it stood at Rs 71.95 on May 27, 2013. While, the RBI’s reference rate for the Yen stood at 55.10, the reference rate for the Great Britain Pound (GBP) stood at 84.1806. The reference rates are based on 12 noon rates of a few select banks in Mumbai.

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