Indian rupee in a highly volatile session of trade settled flat against US dollar on Wednesday on dollar demand amidst its strength in the overseas market. The currency gained steam in the afternoon deals tailing the local equities that ended with gains close to a percent. The rupee, however, later ended flat, as investors contemplated over what could be the first tentative step taken by the US Federal Reserve to wean the world off the super-easy money it has used to treat the last five years of financial turmoil. Market participants widely expect the central bank to probably announce a small reduction to its $85 billion monthly bond-buying programme. On the global front, U.S. dollar held near a four-week trough against a basket of major currencies on Wednesday as investors bet that any move by the U.S. Federal Reserve to roll back stimulus will be very modest.
Finally the rupee ended at 63.37, almost unchanged from its previous close of 63.39 on Tuesday. The currency touched a high and low of 63.46 and 63.05 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 63.14 and for Euro it stood at 84.36 on September 18, 2013. While, the RBI’s reference rate for the Yen stood at 63.65, the reference rate for the Great Britain Pound (GBP) stood at 100.4810. The reference rates are based on 12 noon rates of a few select banks in Mumbai.
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