Indian rupee is showing some volatility on Wednesday after vehemently rallying for past couple of days. The domestic currency started strong as easing geopolitical tensions in Syria led to cooling of global crude oil prices and in turn eased the concern of rise in CAD. There was some enthusiasm from last day’s announcement of trade deficit in August narrowing down to a five-month low of $10.9 billion. Also, the Reserve Bank of India late on Tuesday said that banks can borrow from overseas market up to 100% of their unimpaired Tier I capital. However, the weakness in equity markets weighed on the sentiments on fear of foreign investors booking profit. In the global markets, yen eased to a seven-week low versus the dollar after US President said that he deeply held a preference for peaceful solutions to Syria issue.
The partially convertible currency was currently trading at 63.90, weaker by 6 paise from its previous close of 63.84/85 on Tuesday. The currency touched a high and low of 64.20 and 63.68 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 64.21 and for Euro it stood at 85.20 on September 10, 2013. While, the RBI’s reference rate for the Yen stood at 64.28, the reference rate for the Great Britain Pound (GBP) stood at 100.8259. The reference rates are based on 12 noon rates of a few select banks in Mumbai.
