Indian rupee, prolonging its seventh consecutive sessions’ losing streak, depreciated to two-month low, logging its lowest closing level since September 10 on Tuesday on account of mounting worries that Federal Reserve could start tapering its $85 billion-a-month asset purchase programme next month or in January, a factor which also wrecked havoc at Dalal Street. Besides, strong dollar demand from banks and oil importers also weighed on the sentiment. Additionally, prevailing caution ahead of release of key macro-economic data, viz IIP, CPI, later today also weighed on the sentiment. On the macro-front, while on one hand, October consumer price index (CPI) is expected to be in double-digits at around 10%, on the other, September IIP data is expected to bring some positive surprise. On the global front, dollar rose broadly, hitting a one-month peak against the yen on Tuesday on higher U.S. government bond yields and growing expectations the Federal Reserve will soon scale back monetary stimulus.
Finally the rupee ended at 63.72, weaker by 23 paise from its previous close of 63.49 on Monday. The currency touched a high and low of 63.83 and 63.35 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 63.53 and for Euro it stood at 85.15 on November 12, 2013. While, the RBI’s reference rate for the Yen stood at 63.85, the reference rate for the Great Britain Pound (GBP) stood at 101.5580. The reference rates are based on 12 noon rates of a few select banks in Mumbai.
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