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Rupee snaps three consecutive sessions’ winning streak on concerns of reduced FII’s exposure in local equities

07 Oct 2013 Evaluate

Indian rupee, snapping three consecutive session’s winning streak was trading weak against dollar on Monday on concerns of foreign investors reducing its purchases of the nation’s stocks as U.S. lawmakers remain deadlocked over extending the debt ceiling. Meanwhile, fresh demand for American currency from importers combined with lower local equities ahead of the July-September earnings season for blue chips, was also weighing on the sentiment. On the global front, with the U.S. set to exhaust measures to avoid breaching the borrowing limit on Oct. 17, House of Representatives Speaker John Boehner said lawmakers won’t raise the threshold without packaging it with other provisions, a nonstarter for President Barack Obama.

Meanwhile in a related development for the currency in the home market, RBI’s deputy governor H.R. Khan reported that RBI is looking at easing restrictions on the forex futures market once the rupee stabilizes. Further, India’s Apex Bank is also in talks with stock market regulator Securities and Exchange Board of India (SEBI) on making the dollar-rupee over-the-counter and futures market trades on a delivery basis.

The partially convertible currency is currently trading at 61.81, weaker by 37 paise from its previous close of 61.44 on Friday. The currency has touched a high and low of 61.85 and 61.52 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 61.40 and for Euro it stood at 83.67 on October 4, 2013. While, the RBI’s reference rate for the Yen stood at 63.25, the reference rate for the Great Britain Pound (GBP) stood at 99.2857. The reference rates are based on 12 noon rates of a few select banks in Mumbai.

Date1US$1GBP

October 4, 2013

61.4099.2857

October 3, 2013

61.93100.4397
(RBI Reference Rate)

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