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Rupee depreciates for ninth straight session on speculation of Fed’s early tapering programme

13 Nov 2013 Evaluate

Indian rupee, after depreciating to two-month low in the previous trading session, continued to trade downbeat for ninth consecutive session on Wednesday on account of strong dollar demand from importers amid weak local equities. Meanwhile, dismal set of macro-economic data also is weighing on the sentiment. On the macro-front, while the retail inflation measured in terms of consumer price index (CPI) rose to 10.09% in October, entering double digits after seven months, industrial production grew way below expectation at two per cent in September. This combined with speculation that the U.S. Federal Reserve is on course to start reducing its stimulus as early as December, which took the dollar to two months high level, also has wreaked havoc for Indian currency.

The partially convertible currency is currently trading at 63.66, weaker by 6 paise from its previous close of 63.72 on Tuesday. The currency has touched a high and low of 63.88 and 63.60 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 63.59 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.

Date1US$1GBP
November 12, 201363.53101.5580
November 11, 201363.29 101.3614

(RBI Reference Rate)

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