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Rupee bounces back to 58 level on dollar selling

26 Jul 2013 Evaluate

Indian rupee bounced back to the 58 level against the dollar amid increased selling of the US currency by exporters and banks. Currency sentiments also improved following comments from Chief Economic Adviser Raghuram Rajan, that all options were being considered to fund the country's record-high current account deficit and policy measures were geared to stabilize a weak rupee in a way that only does minimal damage to growth. Positive local equity markets and other Asian currencies gains against dollar also supported the domestic unit. However, month end dollar demand from importers was restricting the rupee’s gains. Investors will now await RBI policy meet on July, 30 for further action.

The partially convertible currency is currently trading at 58.92, stronger by 34 paise from its previous close of 59.11 on Thursday. The currency has touched a high and low of 58.99 and 58.70 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at Rs 58.94 and for Euro it stood at Rs 77.8668 on July 25, 2013. While, the RBI’s reference rate for the Yen stood at 59.01, the reference rate for the Great Britain Pound (GBP) stood at 90.4752. The reference rates are based on 12 noon rates of a few select banks in Mumbai.

Date

1US$

1GBP

July 25, 2013

58.94 90.4752

July 24, 2013

59.44 91.2444
(RBI-Reference rate)

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