Indian rupee, after getting a weak start, went on losing ground and depreciated to more than two month low, past the perilous 62/$ level on Monday. Massive drubbing of local equities on prevailing caution ahead of RBI’s third quarter policy review weighed on the sentiment. Although, Indian currency recouped most of its losses in early afternoon deals on some dollar selling by state-run banks on behalf of exporters, the currency yet again started its depreciating streak, tailing the massive sell-off in other emerging market currencies on stimulus pullback concerns. All the emerging market currencies from Brazil, Russia, South Africa and Turkey depreciated on Monday as global investors bought dollars after Argentina allowed its currency to weaken because its foreign exchange reserves were at a seven-year low.
Finally the rupee ended at 63.10, weaker by 42 paise from its previous close of 62.68 on Friday. The currency touched a high and low of 63.32 and 62.60 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 62.71 and for Euro stood at 85.82 on January 27, 2014. While, the RBI’s reference rate for the Yen stood at 61.21, the reference rate for the Great Britain Pound (GBP) stood at 103.5040. The reference rates are based on 12 noon rates of a few select banks in Mumbai.
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