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Rupee turns weak as FM fails to announce concrete measures

13 Jun 2013 Evaluate

Snapping earlier session’s gains, Indian rupee depreciated against greenback and extended losses following finance minister’s comment that, there is concern about the rupee and what is happening in India is not unusual for countries with large current account deficit. In order to console the situation, Chidambaram said, 'a number of measures have to be taken to revise growth in economy, fiscal consolidation tops list, followed by moderating inflation.' Increasing dollar demand from importers, dollar strength against other Asian currencies and weak local equity markets pressurized local unit.

The partially convertible currency is currently trading at 58.45, weaker by 68 paise from its previous close of 57.77 on Wednesday. The currency touched a high and low of 58.55 and 58.03 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at Rs 58.27 and for Euro it stood at Rs 77.50 on June 12, 2013. While, the RBI’s reference rate for the Yen stood at 60.27, the reference rate for the Great Britain Pound (GBP) stood at 91.1580. The reference rates are based on 12 noon rates of a few select banks in Mumbai.

Date

1US$

1GBP

June 12, 2013

58.2791.1580

June 11, 2013

58.92 91.8059

(RBI-Reference rate)

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