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Rupee trades weak on the back of dollar’s strength in overseas market

31 Oct 2013 Evaluate

Indian rupee, snapping two consecutive sessions’ appreciating streak, was trading weak on Thursday on account of month end dollar demand  from importers for the American currency in view of its strength in the overseas markets against the basket of major currencies after a US Federal Reserve policy statement gave a better-than-expected outlook on economic conditions. Further, losses of local equities on account of F&O expiry, also weighed on the sentiments. Back in the previous session, Indian currency gained on government panel recommendation of an immediate increase in diesel prices, which in turn reduced some of the concerns about the country’s finances. In the global markets, dollar hovered near a two-week high against a basket of major currencies on Thursday, after extending gains when the Federal Reserve mollified jumpy markets and kept its massive bond-buying stimulus in place

The partially convertible currency is currently trading at 61.41, weaker by  17 paise from its previous close of 61.24 on Wednesday. The currency has touched a high and low of 61.45 and 61.29 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 61.48 and for Euro it stood at 84.48 on October 30, 2013. While, the RBI’s reference rate for the Yen stood at 62.61, the reference rate for the Great Britain Pound (GBP) stood at 98.7052. The reference rates are based on 12 noon rates of a few select banks in Mumbai.

Date1US$1GBP

October 30, 2013

61.4898.7052

October 29, 2013

61.4698.9862
(RBI Reference Rate)

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