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Rupee trades strong on sustained foreign capital inflows

21 Jan 2014 Evaluate

Indian rupee, after opening on strong note, has sustained early gains on Tuesday on persistent foreign capital inflows amidst positive local equities. Besides, increased selling of the American currency by exporters also is adding to the positive sentiment. Reports that fiscal year borrowing may be less than earlier budgeted if fiscal deficit is kept in check, also aided Rupee’s appreciation. However, negative trade of Asian currencies is keeping local unit’s gains in check. In the global market, dollar rose versus the yen on Tuesday, aided by renewed talk that the U.S. Federal Reserve may announce a further reduction of its bond-buying stimulus next week

The partially convertible currency is currently trading at 61.50, stronger by 13 paise from its previous close of 61.63 on Monday. The currency touched a high and low of 61.53 and 61.45 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 61.63 and for Euro stood at 83.42 on January 20, 2014. While, the RBI’s reference rate for the Yen stood at 59.19, the reference rate for the Great Britain Pound (GBP) stood at 101.2532. The reference rates are based on 12 noon rates of a few select banks in Mumbai.

Date1US$1GBP
January 20, 201461.63101.2532
January 17, 201461.35100.2120

(RBI-reference rate)

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