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Rupee depreciates amid increasing dollar demand

26 Jun 2013 Evaluate

Indian rupee was trading lower on Wednesday, amid increasing dollar demand from PSU banks and importers. A positive opening in the domestic equity market and easing dollar against other currencies in overseas markets capped the rupee fall. Continued capital outflows from foreign funds also affected the rupee value against the dollar. US currency gained for the sixth day today supported by data underscoring the Federal Reserve’s view of an improving economy. Meanwhile, Reserve Bank of India has notified the government's proposal for opening the overseas borrowing route for several sectors, which will give some relief to the battered local unit.

The partially convertible currency is currently trading at 59.86, weaker by 20 paise from its previous close of 59.66 on Wednesday. The currency touched a high and low of 59.90 and 59.72 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at Rs 59.70 and for Euro it stood at Rs 78.38 on June 25, 2013. While, the RBI’s reference rate for the Yen stood at 61.25, the reference rate for the Great Britain Pound (GBP) stood at 92.2531. The reference rates are based on 12 noon rates of a few select banks in Mumbai.

Date

1US$

1GBP

June 25, 2013

59.7092.2531

June 24, 2013

59.7391.8171
(RBI-Reference rate)

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