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Rupee snaps three consecutive sessions’ losing streak

04 Jul 2013 Evaluate

Indian rupee, snapping its three-session losing streak, strengthened against the dollar on increased selling of the US currency by exporters. Besides, strength of domestic equity market and yen's gain against the American currency overseas also helped the rupee to recover.  Additionally, speculation that Unilever Plc will bring in capital to complete a $5.4 billion open offer to boost ownership of its Indian unit, also supported the local currency. However, the local unit pared some of its gains after RBI said that the bank would not defend any particular exchange rate, which raised concerns that the central bank is unlikely to defend any particular level strongly. On the global front, Euro fell on Thursday and was seen vulnerable before a European Central Bank meeting where President Mario Draghi is likely to point to a weak euro zone economy and may hint it needs more help.

Finally the rupee ended at 60.14, stronger by 12 paise from its previous close of 60.26 on Wednesday. The currency touched a high and low of 60.39 and 59.91 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at Rs 60.09 and for Euro it stood at Rs 78.07 on July 04, 2013. While, the RBI’s reference rate for the Yen stood at 60.25, the reference rate for the Great Britain Pound (GBP) stood at 91.5779. The reference rates are based on 12 noon rates of a few select banks in Mumbai.

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