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Rupee makes another record low of 64.53 intraday, recovers on RBI intervention

21 Aug 2013 Evaluate

Indian currency is not getting any respite, touching new lows every day. Wednesday was not a different one when the rupee slumped to its record low of 64.53/$ intraday. It was the speculated RBI intervention and it was reported that the central bank was selling dollar through PSBs at Rs 64.40 that brought some recovery in the domestic currency, there was further strength towards the end, still rupee ended above 64 mark. However, there was complete mayhem in the currency markets with all the emerging market currencies weakening against the dollar ahead of the FOMC minutes that may disclose that Fed will start tapering its stimulus soon. In the global markets, dollar recovering from its six-month low was trading higher against a basket of currencies.

Finally the rupee ended at 64.02, weaker by 77 paise from its previous close of 63.25 on Tuesday. The currency has touched a high and low of 64.53 and 63.15 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 63.46 and for Euro it stood at 85.12 on August 21, 2013. While, the RBI’s reference rate for the Yen stood at 65.02, the reference rate for the Great Britain Pound (GBP) stood at 99.4172. The reference rates are based on 12 noon rates of a few select banks in Mumbai.

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