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Rupee trades downbeat after IMF lowers India’s growth estimate to 3.75% in 2013

09 Oct 2013 Evaluate

Indian rupee, after retreating from seven week high in the previous trading session, was trading downbeat against US dollar on Wednesday, tailing the subdued momentum of local equities in early deals after International Monetary Fund (IMF) on Tuesday lowered its projection of India’s growth rate to 3.75% in 2013 from 5.7% estimated earlier on account of poor demand and weak manufacturing and services sector performance. Additionally, fresh dollar demand from oil importers and bank in view of its strength overseas, was also weighing on the sentiment. On the global front, dollar got some relief against the yen on Wednesday from news U.S. President Barack Obama has tapped dovish Federal Reserve Vice Chairwoman Janet Yellen to head the U.S. central bank, though the U.S. budget impasse kept the greenback near an eight-month trough against a basket of currencies.

The partially convertible currency is currently trading at 62.18, weaker by 38 paise from its previous close of 61.80 on Tuesday. The currency has touched a high and low of 62.30 and 61.20 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 61.68 and for Euro it stood at 83.68 on October 8, 2013. While, the RBI’s reference rate for the Yen stood at 63.50, the reference rate for the Great Britain Pound (GBP) stood at 99.2013. The reference rates are based on 12 noon rates of a few select banks in Mumbai.

Date1US$1GBP

October 8, 2013

61.6899.2013

October 7, 2013

61.77 99.0640
(RBI Reference Rate)

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