Indian rupee made a soft start of the new week, unable to recover from the overhang of the last week RBI’s surprising decision to hike the Repo rate by a quarter percent. The local currency remained in somber mood since morning, tailing the weakness in other emerging market currencies, as the talks renewed of Fed going for a tapering in November. On domestic front, the rupee was additionally pressured by the month end dollar demand from the importers; however there was some recovery in the late hours but it was unable to help the currency much. In global markets, the dollar despite some earlier strength, turned lower against the yen and euro after German Chancellor Angela Merkel won a third term in office and German, French and euro zone private sector surveys came in better than expected.
Finally the rupee ended at 62.60, weaker by 33 paise from its previous close of 62.27 on Friday. The currency has touched a high and low of 62.72 and 62.34 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 62.52 and for Euro it stood at 84.67 on September 23, 2013. While, the RBI’s reference rate for the Yen stood at 63.17, the reference rate for the Great Britain Pound (GBP) stood at 100.2571. The reference rates are based on 12 noon rates of a few select banks in Mumbai.
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