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Rupee climbs against dollar as RBI chief fuels confidence

05 Sep 2013 Evaluate

Indian rupee jumped over 2% against the U.S. dollar, leading gains among emerging Asian currencies, on the back of heavy dollar selling by exporters and banks amid fresh measures announced by new RBI Governor Raghuram Rajan to curb the rupee's slide. Moreover, the new RBI governor has announced measures, such as liberalization of the financial market by enhancing the limits for exporters to re-book cancelled forward exchange contracts and opening a special concessional window for swapping foreign currency non-resident (FCNR) deposits and dollar funds, to support the rupee. Positive local equity markets and dollar’s weakness against other Asian currencies also helped domestic currency to recover. However, most emerging Asian currencies erased some of their initial gains on expectations that the Federal Reserve may start scaling back its bond-buying program as early as this month.

The partially convertible currency is currently trading at 66.10, stronger by 1 rupee from its previous close of 67.10 on Wednesday. The currency has touched a high and low of 66.50 and 65.53 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 67.02 and for Euro it stood at 88.23 on September 04, 2013. While, the RBI’s reference rate for the Yen stood at 67.18, the reference rate for the Great Britain Pound (GBP) stood at 104.3171. The reference rates are based on 12 noon rates of a few select banks in Mumbai.

Date1US$1GBP

September 4, 2013

67.02 104.3171

September 3, 2013

66.88

103.9499
(RBI-Reference rate)

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