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Rupee snaps three days gaining streak; ends weak on Thursday

09 Jun 2011 Evaluate

The Indian rupee snapping three days gaining streak ended weak on Thursday as comfort from dollar's weakness overseas was offset by choppy local shares. Local shares trading in range bound manner ended lower post India’s food inflation rose to a 9 week high at 9.01% for week ended May 28, 2011. As per the official data, the index of Food Articles group increased by 0.6% to 187.5 (provisional) from 186.3 (provisional). However, the weakness of the dollar against the basket of major currencies limited the fall of the local unit. Meanwhile, the euro rose broadly on Thursday as investors geared up for hawkish signals from the European Central Bank that would boost the single currency's yield differentials.

Finally the Rupee ended at 44.73/74, weaker by 3 paise from its previous close of 44.70 on Thursday. It has touched a high and low of 44.76 and 44.64 respectively. The Reserve Bank of India's reference rate for the US dollar stood at 44.72 and for Euro it stood at 65.38 on June 9, 2011. While, the RBI's reference rate for the Yen stood at 55.83 and the reference rate for the Great Britain Pound (GBP) stood at 73.4705. The reference rates are based on 12 noon rates of a few select banks in Mumbai.

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