Indian rupee recuperated substantial ground on Thursday amidst speculation of Reserve Bank of India’s intervention in the currency markets for the second consecutive session following the currency’s slide to a historic low level. Appreciation to the partially convertible currency also came tailing the green close of local equities after weekly inflation fell sharply to single digit at 9.01% for the week ended November 12, as compared to 10.63% in the previous week. Additionally, traders which pruned their long dollar positions after the central bank raised the ceiling on interest rates for deposits by non-resident Indians, added to the optimism for Indian currency. On the global front, euro recovered from steep falls against the dollar on Thursday as market participants took profit on short positions.
Finally the rupee ended at 52.08, stronger by 27 paise from its previous close of 52.35 on Wednesday. It has touched a high and low of 52.37 and 52.02 respectively. The Reserve Bank of India's reference rate for the dollar stood at Rs 52.25 and for Euro it stood at 69.82 on November 24, 2011. While, the RBI's reference rate for the Yen stood at 67.75 and the reference rate for the Great Britain Pound (GBP) stood at 81.2279. The reference rates are based on 12 noon rates of a few select banks in Mumbai.
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