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Rupee ends almost flat after trading in a narrow range

16 Jan 2014 Evaluate

Indian rupee continued its sluggish trend and ended almost flat on Thursday after trading in a narrow range. The domestic currency made a soft start on the back of continued strong demand for the dollar from banks and importers mainly the petro, triggered by higher greenback overseas. The weakness in local equity markets too weighed on the sentiments. There was some recovery during the day with dollar selling by foreign banks, reportedly on behalf of clients looking to invest in the domestic debt market. In the global markets, the dollar strengthened after US data underscored a recovery in the economy, and on talks of the central bank committed of withdrawing monetary stimulus.

Finally the rupee ended at 61.54, almost unchanged from its previous close of 61.55 on Wednesday. The currency touched a high and low of 61.71 and 61.51 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 61.53 and for Euro stood at 83.83 on January 16, 2014. While, the RBI’s reference rate for the Yen stood at 58.77, the reference rate for the Great Britain Pound (GBP) stood at 100.7349. The reference rates are based on 12 noon rates of a few select banks in Mumbai.

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