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Rupee slumps to a life-time low against dollar

20 Jun 2013 Evaluate

Indian rupee slumped to a life-time low against dollar on the back of Federal Open Market Committee (FOMC) chairman Ben Bernanke’s statement that he would start withdrawing the bond purchases programme knows as Quantitative Easing 3 (QE3) in 2013. Dollar’s strength against other Asian currencies after Ben Bernanke comments weighed on the domestic unit. Weakness in local equity markets pressurized domestic currency and increasing dollar demand from importers and banks also pressurized local unit.

The partially convertible currency is currently trading at 59.69, weaker by 98 paise from its previous close of 58.71 on Wednesday. The currency touched a high and low of 60.00 and 59.50 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at Rs 58.74 and for Euro it stood at Rs 78.69 on June 19, 2013. While, the RBI’s reference rate for the Yen stood at 61.82, the reference rate for the Great Britain Pound (GBP) stood at 91.9880. The reference rates are based on 12 noon rates of a few select banks in Mumbai.

Date

1US$

1GBP

June 19, 2013

58.7491.9880

June 18, 2013

58.45 91.5993

(RBI-Reference rate)

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