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Rupee ends unchanged on Thursday; dollar sales by custodian banks aids

09 Jan 2014 Evaluate

Indian rupee, after opening weak and snapping two consecutive sessions’ appreciating streak in early deals, ended almost unchanged on Thursday. The currency recouped most of its lost ground after some custodian banks reportedly sold dollars on behalf of clients looking to invest in the government debt market. Nevertheless, prevailing caution ahead of factory output data on Friday and inflation data next week also restricted the appreciation of Indian currency, with weakness of local equities ahead of Infosys' Q3FY14 earnings, also weighing on the sentiment. On the global front, euro recovered some ground ahead of a European Central Bank news conference on Thursday after falling to one-month and one-year lows against the dollar and British pound, reflecting concern over Europe's poorer growth outlook. 

Finally the rupee ended at 62.08, almost unchanged from its previous close of 62.06 on Wednesday. The currency touched a high and low of 62.24 and 61.97 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 62.18 and for Euro stood at 84.49 on January 9, 2014. While, the RBI’s reference rate for the Yen stood at 59.29, the reference rate for the Great Britain Pound (GBP) stood at 102.3126. The reference rates are based on 12 noon rates of a few select banks in Mumbai.

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