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Rupee adds to previous sessions’ weakness ahead of release of IIP, CPI data

12 Nov 2013 Evaluate

Indian rupee, after depreciating to two-month low in previous session, was trading nervous in early deals on Tuesday, on account of prevailing caution ahead of the release of macro-economic data, Index of Industrial Production and Consumer Price Inflation (CPI), later in the evening. Despite encouraging trade data for October, the Indian rupee fell through the 63-mark on Monday on worries about an earlier-than expected tapering of the US Federal Reserve’s stimulus measures coupled with fears of an overhang of gilts in the local market pushed bond yields past the 9% mark. Meanwhile, in today’s session, continued dollar demand from banks and oil importers was weighing on the sentiment, whereas lack of any firm trend from local equities did not help the Indian currency either. On the global front, dollar rose to a more than seven-week high against the yen in Asia on Tuesday, coasting on heightened expectations that the U.S. Federal Reserve will reduce its stimulus after last week's bullish jobs data.

The partially convertible currency is currently trading at 63.49, weaker by 23 paise from its previous close of 63.26 on Monday. The currency has touched a high and low of 63.52 and 63.35 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 63.29 and for Euro it stood at 84.59 on November 11, 2013. While, the RBI’s reference rate for the Yen stood at 63.97, the reference rate for the Great Britain Pound (GBP) stood at 101.3614. The reference rates are based on 12 noon rates of a few select banks in Mumbai.

Date1US$1GBP
November 11, 201363.29 101.3614
November 8, 201362.73 100.9224

(RBI Reference Rate)

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