Rupee went through a very volatile trade on Tuesday, after making a weak start tailing the decline in other emerging market currencies, ahead of US Federal Reserve’s two days policy meeting which is expected to result in stimulus being scaled back. In latter trade the domestic currency made a good recovery, paring most of its early session losses on dollar selling by foreign banks. There were also hopes of good foreign inflows with recent RBI steps including relaxed terms on 3-5 year dollar deposits. However, towards the end the rupee once again turned weak on fresh demand from importers for the American currency. In the global markets, dollar remained under pressure against a basket of currencies ahead of the Federal Reserve meeting.
Finally the rupee ended at 63.39, weaker by 54 paise from its previous close of 62.85 on Monday. The currency touched a high and low of 63.70 and 62.40 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 63.37 and for Euro it stood at 84.59 on September 17, 2013. While, the RBI’s reference rate for the Yen stood at 63.93, the reference rate for the Great Britain Pound (GBP) stood at 100.8582. The reference rates are based on 12 noon rates of a few select banks in Mumbai.
