Following earlier session’s record fall, the Indian rupee unexpectedly opened stronger. Paring some of its early gains, still traded firm against the greenback in the late morning session. Currency market took a breather from Reserve Bank of India's move to provide dollars directly to oil companies, while a recovery in emerging market currencies also helped the local unit. With this initiative, RBI has removed the major source of dollar demand from the spot market. Moreover, dollar selling by banks and exporters and positive local equity markets also supported the domestic currency. However, investors were still worried about the continued increase in the crude oil prices, which have been going up pretty steeply in the last few weeks and expected to rise further as western countries prepared to attack Syria, increasing worries over the security of oil supplies across the Middle East, which pumps a third of the world’s oil.
The partially convertible currency is currently trading at 67.80, stronger by Re 1 from its previous close of 68.80 on Wednesday. The currency has touched a high and low of 67.80 and 66.85 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 68.36 and for Euro it stood at 91.46 on August 28, 2013. While, the RBI’s reference rate for the Yen stood at 70.25, the reference rate for the Great Britain Pound (GBP) stood at 106.0281. The reference rates are based on 12 noon rates of a few select banks in Mumbai.
| Date | 1US$ | 1GBP |
August 28 2013 | 68.36 | 106.0281 |
August 27 2013 | 65.66 | 102.1983 |
