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Rupees reverses early gains; ends substantially weak on Tuesday

21 Jan 2014 Evaluate

Indian rupee, after opening on strong note, ended substantially weak against dollar on Tuesday after local equities almost erased most of their early gains to end slightly higher. Indian currency had appreciated considerably in early deals after some foreign banks reportedly sold dollars. However, the local unit reversed most of its gains in late trade on some dollar demand from oil importers and bank in view of its strength overseas. On the global front, dollar gained against the yen on Tuesday, helped by U.S. Treasury yields rising on renewed talk that the U.S. Federal Reserve may announce a further reduction of its bond-buying stimulus next week.

Finally the rupee ended at 61.90, weaker by 27 paise from its previous close of 61.63 on Monday. The currency touched a high and low of 61.94 and 61.45 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 61.53 and for Euro stood at 83.37 on January 21, 2014. While, the RBI’s reference rate for the Yen stood at 58.87, the reference rate for the Great Britain Pound (GBP) stood at 101.0844. The reference rates are based on 12 noon rates of a few select banks in Mumbai.

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