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Rupee hits one month high level; trades psychological mark of sub 62/$

19 Sep 2013 Evaluate

Indian rupee, in sync with most of the emerging market currency, appreciated significantly and hit a one month high level against the dollar on Thursday after U.S. Fed surprised the markets by postponing the start of reductions to its stimulus programme. Hopes of increased capital inflows after the US Federal Reserve's decision to keep its stimulus programme intact, mainly bolstered sentiment for local currency and equities that hit a highest level since January,2011 in early deals. Additionally, weakness of dollar on revived risk appetite was also working in the favour of all emerging market’s currency, including Rupee. Further, Fed ‘s decision, which also is expected to provide a reprieve to the Reserve Bank of India (RBI) in its policy making, given if it wants to roll back some of the cash tightening steps it initiated since mid-July to stabilize the plunging rupee, buttressed the sentiment.

The partially convertible currently is trading at 61.76, stronger by Rs 1.61 paise from its previous close of 63.37 on Wednesday. The currency has touched a high and low of 62.08 and 61.64 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.  

Date1US$1GBP

September 18, 2013

63.14100.4810

September 17, 2013

63.37100.8582
(RBI-Reference Rate)

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