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Rupee extends losses for fourth straight day on Friday on good dollar demand

20 Dec 2013 Evaluate

Indian rupee, extended losses for fourth straight day on Friday, on account of good demand for dollar from banks and importers on the back of its firmness in overseas markets. However, persistent foreign capital inflows into India's equity market has restricted further fall of Indian currency. Further, the currency also drew some solace after Finance Minister P Chidambaram asserted that India is better prepared to deal with the impact of US stimulus withdrawal, adding that consequences will not be large and more steps will be taken, if required. On the global front, dollar remained on a firm footing in Asia on Friday, supported by a rise in U.S. Treasury yields a day after the U.S. Federal Reserve said it would start to cut its bond-buying stimulus.

The partially convertible currency is currently trading at 62.24, weaker by 12 paise from its previous close of 62.12 on Thursday. The currency touched a high and low of 62.40 and 62.18 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 62.38 and for Euro stood at 85.29 on December 19, 2013. While, the RBI’s reference rate for the Yen stood at 59.98, the reference rate for the Great Britain Pound (GBP) stood at 102.1535. The reference rates are based on 12 noon rates of a few select banks in Mumbai.

Date1US$1GBP
December 19, 201362.38 102.1535
December 18, 201361.91 100.8328

(RBI-reference rate)

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