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Rupee recuperates from historic low levels; RBI intervention speculated

23 Nov 2011 Evaluate

Some respite finally came to the money markets days after of mauling as Indian currency after making fresh lows for past two consecutive sessions, recuperated from its historic low level on Wednesday on speculation of RBI’s intervention. Selling of dollars from state run banks chiefly snapped the eight day long losing momentum of the Indian currency. However, the sluggish trend of local equities coupled with subdued regional counterparts has kept the Indian currency gyrating above the psychological 52 mark. On the global front, the euro slipped on Wednesday after a newspaper said Belgium and France were in fresh talks over an existing rescue deal for Dexia, stirring worries about the potential for an increased fiscal burden on France.

Back on the home turf, the Reserve Bank of India’s, Governor Duvvuri Subbarao told “RBI can and will intervene” in the foreign-exchange market when it is consistent with its policy of ensuring that exchange-rate volatility does not impair macroeconomic stability.

The partially convertible currency is currently trading at 52.19, stronger by 24 paise from its previous close of 52.43 on Tuesday. It has touched a high and low of 52.57 and 51.70 respectively. The Reserve Bank of India's reference rate for the dollar stood at Rs 52.70 and for Euro it stood at 71.08 on November 22, 2011. While, the RBI's reference rate for the Yen stood at 68.41 and the reference rate for the Great Britain Pound (GBP) stood at 82.4436. The reference rates are based on 12 noon rates of a few select banks in Mumbai.

Date1US$1GBP
November 22, 201152.7082.4436
November 21, 201151.7181.4173
RBI Reference Rate

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