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Rupee turns weak post Bernanke’s testimony

18 Jul 2013 Evaluate

Indian rupee edged lower on Thursday, on account of dollar demand from importers amidst the strength of greenback in the overseas markets. All emerging currencies, including Rupee fell after Federal Reserve Chairman Ben Bernanke confirmed market views that the US central bank expects to start tapering monetary stimulus this year. However, positive local equities too some extent are restricting the further downside of the local unit.

The rupee's weakness, despite slew of measures taken by the RBI late on Monday, shows demand for dollars remains strong, overriding the central bank's attempt to stamp down on speculation.

The partially convertible currency is currently trading at 59.69, weaker by 34 paise from its previous close of 59.35 on Wednesday. The currency has touched a high and low of 59.78 and 59.56 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at Rs 59.36 and for Euro it stood at Rs 77.98 on July 17, 2013. While, the RBI’s reference rate for the Yen stood at 59.77, the reference rate for the Great Britain Pound (GBP) stood at 89.6905. The reference rates are based on 12 noon rates of a few select banks in Mumbai.

Date

1US$

1GBP

July 17, 2013

59.3689.6905

July 16, 2013

59.3989.8965
(RBI-Reference rate)

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