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Rupee recovers some ground ahead of RBI’s third quarter monetary policy review

28 Jan 2014 Evaluate

Indian rupee, after opening around previous session’s closing level, was trading bit strong ahead of RBI’s third quarter monetary policy review, where street widely expects the central bank to yet again hold rates. RBI Governor Raghuram Rajan's outlook on the future rate trajectory and his comments on the monetary policy committee report will provide further direction to Indian currency. However, Indian currency’s further recovery was restricted on account of dollar gains against the basket of major currencies. In the global market, dollar regained a firmer footing against the yen on Tuesday, as expectations the US Federal Reserve will scale back its stimulus further pulled the US currency off a seven-week low against its Japanese counterpart

The partially convertible currency is currently trading at 63.01, stronger by 9 paise from its previous close of 63.10 on Monday. The currency touched a high and low of 63.18 and 62.98 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.

Date1US$1GBP
January 25, 201462.71 103.5040
January 24, 201462.17 103.3817
(RBI-reference rate)

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