Indian rupee, prolonging previous sessions’ appreciating streak, was trading tad stronger tailing the sharp rise of local equities after RBI, in a positive surprise for the market, maintained a status quo stance on its key policy rates as it left the policy repo rate and reverse repo rate under the liquidity adjustment facility (LAF) unchanged at 7.75% and 6.75% respectively. However, the currency pared its early gains after RBI, in its policy document underscored that high level of CPI inflation excluding food and fuel leaves no room for complacency for RBI, which will have to act accordingly, including on off-policy dates, if the expected softening of food inflation does not materialises and translates into a significant reduction in headline inflation in the next round of data releases, or if inflation excluding food and fuel does not fall. Meanwhile, increased dollar demand from oil importers for American greenback also restricted the further momentum of Indian currency. In the global market, dollar was on the back foot against the euro and the yen on Wednesday as traders cautiously looked to what the Federal Reserve will do with its stimulus -- a major force that has simultaneously underpinned riskier global assets and restrained the dollar in recent years.
The partially convertible currency is currently trading at 61.92, stronger by 8 paise from its previous close of 62.00 on Tuesday. The currency has touched a high and low of 61.98 and 61.78 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 61.95 and for Euro stood at 85.33 on December 17, 2013. While, the RBI’s reference rate for the Yen stood at 60.17, the reference rate for the Great Britain Pound (GBP) stood at 101.1402. The reference rates are based on 12 noon rates of a few select banks in Mumbai.
| Date | 1US$ | 1GBP |
| December 17, 2013 | 61.95 | 101.1402 |
| December 16, 2013 | 62.10 | 101.2704 |
(RBI-Reference Rate)
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