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Rupee appreciates to a week high in early deals on RBI's latest steps

12 Aug 2013 Evaluate

Indian rupee appreciated to one week high level in morning deals after the central bank took more measures to curb the supply of cash in a bid to stem an unprecedented slide in the currency.  The Reserve Bank of India will auction 22,000 crore of cash-management bills every Monday. While, the first sale - a tranche of Rs 11000 crore will take place later in the day, another Rs 11000 crore is scheduled for Tuesday. Further, the currency also gained some strength on expectation that Finance Minister P. Chidambaram will announce measures to draw in foreign inflows in a bid to narrow down the record current account deficit that is the key source of pressure on the rupee. Additionally, gains of local equities also worked in the favour of local unit.

However, Indian currency cooled down from its week’s high level on account of prevailing caution ahead of release the Index of Industrial Production (IIP) and Consumer Price Index (CPI) inflation data, later in the day. On the global front, dollar was a touch firmer in Asia on Monday as the euro took a knock from more aid rumblings over Greece, while technical signals were flashing oversold after almost five weeks of losses for the US currency.

The partially convertible currency is currently trading at 60.81, stronger by 7 paise from its previous close of 60.88 on Thursday. The currency touched a high and low of respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at Rs 61.15 and for Euro it stood at 81.54 on August 8, 2013. While, the RBI’s reference rate for the Yen stood at 63.44, the reference rate for the Great Britain Pound (GBP) stood at 94.7710. The reference rates are based on 12 noon rates of a few select banks in Mumbai.

Date

1US$

1GBP

August 8, 2013

61.15 94.7710

August 7, 2013

61.39 94.1723

(RBI-Reference rate)

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