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Rupee extends weakness after U.S. Fed's taper decision

19 Dec 2013 Evaluate

Indian rupee, extending its previous two trading sessions’ losing streak, was trading weaker on Thursday on U.S. Federal Reserve's move to taper its monetary stimulus, which will incrementally reduce the inflows into emerging market’s currencies. The U.S. central bank on Wednesday decided to trim its monthly asset purchases by $10 billion, bringing them down to $75 billion, with the reduction to be equally split between mortgage-backed securities and Treasury bonds, also pulled the local equities lower. On the global front, dollar gave back some of its gains after cresting at its highest against the yen in more than five years on Thursday in Asia.

The partially convertible currency is currently trading at 62.40, weaker by 31 paise from its previous close of 62.09 on Wednesday. The currency touched a high and low of 62.47 and 62.25 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 61.91 and for Euro stood at 85.26 on December 18, 2013. While, the RBI’s reference rate for the Yen stood at 60.16, the reference rate for the Great Britain Pound (GBP) stood at 100.8328. The reference rates are based on 12 noon rates of a few select banks in Mumbai.

Date1US$1GBP
December 18, 201361.91 100.8328
December 17, 201361.95101.1402

(RBI-Reference Rate)

 

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