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Rupee prolongs winning streak on Bernanke’s dovish comments

11 Jul 2013 Evaluate

Indian rupee, extending previous two sessions’ appreciating streak, strengthened against greenback on Thursday, tracing stronger local equities which rallied on easing worries about selling by foreign investors, after comments from Federal Reserve chairman Ben Bernanke on US stimulus were seen as more dovish, sparking hopes that tapering of the asset purchase programme may not be necessarily close. Bernanke said on Wednesday that a highly accommodative monetary policy would be needed for the foreseeable future. Meanwhile, dollar weakness was also adding to the local currency’s strength. On the global front, dollar tumbled after dovish comments from Fed Chairman Ben Bernanke forced traders to trim their long positions on the greenback.

The partially convertible currency is currently trading at 59.54, stronger by 60 paise from its previous close of 60.14 on Wednesday. The currency touched a high and low of 59.57 and 59.38 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at Rs 60.13 and for Euro it stood at Rs 76.89 on July 10, 2013. While, the RBI’s reference rate for the Yen stood at 59.76, the reference rate for the Great Britain Pound (GBP) stood at 89.5200. The reference rates are based on 12 noon rates of a few select banks in Mumbai.

Date

1US$

1GBP

July 10, 2013

60.13 89.5200

July 9, 2013

61.07  89.9075
(RBI-Reference rate)
 

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