The Indian rupee, after opening substantially weaker, has cut short some of its early losses on Tuesday, tailing the intraday-recovery of equity markets from day’s low point. Additionally, hopes of foreign inflows in the ongoing spectrum auction have curbed the depreciation of Indian currency. In the previous session, Indian currency snapped two consecutive losing streaks, spurred by late dollar selling by foreign banks, likely for mobile phone operators bidding for spectrum in an auction.
Nevertheless, underlying mood continues to remain downbeat for Indian currency on account of dollar demand from banks and oil importers in view of its strength in the overseas market. All the emerging market currencies, including ours, fell with data showing U.S. manufacturing activity slowed sharply, prompting some risk aversion.
The partially convertible currency is currently trading at 62.72, weaker by 15 paise from its previous close of 62.57 on Monday. The currency touched a high and low of 62.82 and 62.56 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 62.68 and for Euro stood at 84.57 on February 3, 2014. While, the RBI’s reference rate for the Yen stood at 61.41, the reference rate for the Great Britain Pound (GBP) stood at 102.9668. The reference rates are based on 12 noon rates of a few select banks in Mumbai.
| Date | 1US$ | 1GBP |
| February 3, 2014 | 62.68 | 102.9668 |
| January 31, 2014 | 62.47 | 102.9493 |
(RBI-Reference Rate)
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