Indian rupee, extending its depreciating streak, was trading weaker at day’s low point, beyond the perilous ’62.50/$’ level on Thursday, mirroring the mayhem in all the emerging market currencies on US Federal Reserve’s decision to further scale back stimulus amid emerging market turmoil. After a two-day meeting, the last to be headed by outgoing chairman Ben Bernanke, the Fed announced a $10 billion cut to its $75 billion-a-month bond-buying programme, known as quantitative easing (QE). The development, which sent all the emerging markets and currencies lower and dollar higher, mainly weighed on the sentiments. Additionally, month-end dollar demand from banks and oil importers also added to pessimistic environment.
The partially convertible currency is currently trading at 62.77, weaker by 36 paise from its previous close of 62.41 on Wednesday. The currency, so far, touched a high and low of 62.90 and 62.72 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 62.20 and for Euro stood at 84.96 on January 29, 2014. While, the RBI’s reference rate for the Yen stood at 60.22, the reference rate for the Great Britain Pound (GBP) stood at 103.1160. The reference rates are based on 12 noon rates of a few select banks in Mumbai.
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