Indian rupee, shrugging off weak start, recouped most of its early losses, ending flat on Wednesday despite better than expected five-month low December WPI data, which spurred gains in local equities. The currency failed to gain momentum on account of some dollar buying by oil importers. Meanwhile, on the macro-front, increasing the odds that interest rates will stay on hold this month, the headline inflation eased to a five-month low of 6.16% in December on lower vegetable prices. Nevertheless, firmness of dollar overseas also restricted the gains of local currency. In the global market, dollar index gained for a second straight day on Wednesday, helped by firmer U.S. yields that pulled the greenback away from a one-month low against the yen and sent the euro lower.
Finally the rupee ended at 61.55, almost unchanged from its previous close of 61.53 on Monday. The currency touched a high and low of 61.71 and 61.42 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 61.58 and for Euro stood at 83.99 on January 15, 2014. While, the RBI’s reference rate for the Yen stood at 58.99, the reference rate for the Great Britain Pound (GBP) stood at 101.0914. The reference rates are based on 12 noon rates of a few select banks in Mumbai.
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