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Rupee hits 9-month low against greenback

29 May 2013 Evaluate

Indian rupee depreciated to nine-month low against greenback amid increasing month-end demand for the US currency from importers and banks. Appreciation of the American currency against major currencies overseas on robust economic data and a weak domestic equity market pressurized the local unit. However, Reserve Bank of India’s (RBI) statement that it will continue to take steps to check excessive volatility in the currency market, capped losses. It plans to allow exporters and importers to rebook and cancel up to 50% of their total hedged exposure from the present cap of 25%.

The partially convertible currency is currently trading at 56.22, weaker by 26 paise from its previous close of 55.96 on Tuesday. The currency touched a high and low of 56.25 and 56.09 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at Rs 55.74 and for Euro it stood at Rs 72.02 on May 28, 2013. While, the RBI’s reference rate for the Yen stood at 54.65, the reference rate for the Great Britain Pound (GBP) stood at 84.1709. The reference rates are based on 12 noon rates of a few select banks in Mumbai.

Date

1US$

1GBP

May 28, 2013

55.7484.1709

May 27, 2013

55.61 84.1806

(RBI-Reference rate)

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