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Rupee continues trading lower post RBI policy announcement

30 Jul 2013 Evaluate

Indian rupee continued trading lower against greenback even after Reserve Bank of India (RBI) left the policy rates unchanged in its first quarter monetary policy, as its priority has switched from reviving an economy growing at its slowest in a decade to supporting a currency that plunged to a record low. The RBI also said that it will roll back the strong measures, which it had taken to defend the embattled rupee two weeks ago, once the rupee gets stabilized. The Dollar’s strength against other Asian currencies and increased month end demand for US currency from importers pressurized the local unit. However, positive domestic stock market, restricted the rupee fall.

The partially convertible currency is currently trading at 59.67, weaker by 25 paise from its previous close of 59.42 on Monday. The currency has touched a high and low of 59.72 and 59.53 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at Rs 59.29 and for Euro it stood at Rs 78.71 on July 29, 2013. While, the RBI’s reference rate for the Yen stood at 60.58, the reference rate for the Great Britain Pound (GBP) stood at 91.1810. The reference rates are based on 12 noon rates of a few select banks in Mumbai.

Date

1US$

1GBP

July 29, 2013

59.29 91.1810

July 25, 2013

58.91 90.6794
(RBI-Reference rate)

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