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Rupee appreciates against dollar as current account deficit narrows

27 Jun 2013 Evaluate

Indian rupee pared some early gains but was still trading higher against greenback in the late morning session on Thursday, as data released by the Reserve Bank of India showed the country's current account deficit narrowed in last quarter. However, rupee is a bit weaker compared to other Asian currencies amid continued month end dollar demand from importers. Positive local equity markets and dollar selling by banks and exporters supported the domestic unit to some extent. Meanwhile, currency sentiments were also boosted with the RBI’s decision on Wednesday to ease rules for overseas borrowing by Indian companies.

The partially convertible currency is currently trading at 60.54, stronger by 19 paise from its previous close of 60.73 on Wednesday. The currency touched a high and low of 60.59 and 60.30 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at Rs 59.85 and for Euro it stood at Rs 78.22 on June 26, 2013. While, the RBI’s reference rate for the Yen stood at 61.36, 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 26, 2013

59.8592.2531

June 25, 2013

59.7092.2531
(RBI-Reference rate)

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