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Rupee drops the most in two weeks as June WPI snaps its easing trend

15 Jul 2013 Evaluate

Indian rupee dropped the most in two weeks on Monday, after India's headline inflation, based on monthly WPI, snapping three consecutive months easing trend and adding to the government's woes, picked up in June driven by higher food prices. On the macro-front, headline inflation, measured by the wholesale price index (WPI), quickened to 4.86 percent in June. However, the surge of local equities for third consecutive session aided Indian currency for retreating sub 60/$ psychological level. On the global front, dollar rose on Monday amid anticipation of improved US sales data which could hasten moves by the country's central bank to wind down its stimulus programme.

Finally the rupee ended at 59.86, weaker by 26 paise from its previous close of 59.60 on Friday. The currency touched a high and low of 60.07 and 59.78 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at Rs 60.05 and for Euro it stood at Rs 78.47 on July 15, 2013. While, the RBI’s reference rate for the Yen stood at 60.51, the reference rate for the Great Britain Pound (GBP) stood at 90.7130. The reference rates are based on 12 noon rates of a few select banks in Mumbai.

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