Indian rupee extending previous session’s depreciation streak, ended weaker against dollar, tracing fifth straight session of loss at Indian equity markets, which extended its freefall after Federal Reserve’s decision to further scale back stimulus amid emerging market turmoil. Indian currency, along with most of the other emerging market currencies went into a tizzy after Fed choose not to address the turbulence in emerging markets, which some investors had thought might delay the widely-flagged policy move. Additionally, month-end dollar demand from banks and importers also weighed on the sentiment. In the global market, the dollar continued its up-move on Thursday after the U.S. Federal Reserve cut $10 billion from its monthly bond-buying stimulus program.
Finally the rupee ended at 62.57, weaker by 16 paise from its previous close of 62.41 on Wednesday. The currency touched a high and low of 62.90 and 62.50 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 62.73 and for Euro stood at 85.60 on January 30, 2014. While, the RBI’s reference rate for the Yen stood at 61.22, the reference rate for the Great Britain Pound (GBP) stood at 103.8679. The reference rates are based on 12 noon rates of a few select banks in Mumbai.
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