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Rupee hits fresh low amid weak local shares

31 May 2013 Evaluate

Indian rupee continued to reel under pressure for the fourth consecutive day, after RBI governor's comments expressed worries over the country's high current account deficit, which spoiled the rate cut hopes. Weak local equity markets and increasing dollar demand from importers pressurized domestic unit. However, euro's gain against the dollar, capped some local unit’s losses. Meanwhile, strengthening of dollar against other Asian currencies also influenced the rupee movement.

The partially convertible currency is currently trading at 56.53, weaker by 14 paise from its previous close of 56.39 on Thursday. The currency touched a high and low of 56.58 and 56.42 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at Rs 56.09 and for Euro it stood at Rs 72.79 on May 30, 2013. While, the RBI’s reference rate for the Yen stood at 55.68, the reference rate for the Great Britain Pound (GBP) stood at 85.1310. The reference rates are based on 12 noon rates of a few select banks in Mumbai.

Date

1US$

1GBP

May 30, 2013

56.09 85.1310

May 29, 2013

56.24 84.5389

(RBI-Reference rate)

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