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Rupee turns weak on increased dollar demand on Wednesday

30 Oct 2013 Evaluate

Indian rupee, after significantly appreciating in the previous session, has turned weak on Wednesday on account of increased dollar demand from foreign banks in view of its strength in the overseas markets against the basket of major currencies. However, positive local equities to some extent are limiting the further depreciation of Indian currency. Indian equity markets are trading around their highest levels in 2013 thanks to the RBI’s second quarter monetary policy review that came in-line with expectations, On the global front, dollar touched a one-week high against a basket of major currencies on Wednesday as investors further trimmed bearish positions ahead of the outcome of the Federal Reserve policy meeting.

The partially convertible currency is currently trading at 61.46, weaker by 15 paise from its previous close of 61.31 on Tuesday. The currency has touched a high and low of 61.57 and 61.40 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 61.46 and for Euro it stood at 84.72 on October 29, 2013. While, the RBI’s reference rate for the Yen stood at 63.01, the reference rate for the Great Britain Pound (GBP) stood at 98.9862. The reference rates are based on 12 noon rates of a few select banks in Mumbai.

Date1US$1GBP

October 29, 2013

61.4698.9862

October 28, 2013

61.50 99.4934

(RBI Reference Rate)

 

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