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Rupee wipes off all the early gains to end flat on Wednesday

05 Feb 2014 Evaluate

Indian rupee, which opened on strong note, erased most of its gains and ended flat on Wednesday, dragged by oil bids. However, Indian currency mostly traded strong for the first half of trading session on the back of dollar’s weakness against major currencies. Nevertheless, Indian currency’s further slide was prevented on account of positive local equities, which recovered substantially to end near day’s high point. In the global market, yen gained on Wednesday, advancing towards recent multi-month highs as stock markets struggled and confidence remained brittle in emerging markets, prompting investors to yet again seek shelter of safe-haven currencies.

Finally, the rupee ended at 62.57, almost unchanged from previous close of 62.53 on Tuesday. The currency touched a high and low of 62.60 and 62.36 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 62.45 and for Euro stood at 84.35 on February 5, 2014. While, the RBI’s reference rate for the Yen stood at 61.58, the reference rate for the Great Britain Pound (GBP) stood at 102.0099. The reference rates are based on 12 noon rates of a few select banks in Mumbai.

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