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Rupee appreciates on expectation of dollar inflows towards the Vodafone deal

07 Feb 2014 Evaluate

Indian rupee, after closing at a week high in previous session on speculation a mobile-phone spectrum auction will draw overseas capital, was trading higher on Friday on expected dollar inflows towards the Vodafone deal. Vodafone Group Plc won the cabinet's approval for its $1.6 billion deal to buy out minority partners in its unit in the country. Additionally, gains in local equities also were aiding sentiments. On the global front, euro rallied on Thursday after European Central Bank President Mario Draghi said there is no euro zone deflation problem, following the bank's decision to leave interest rates unchanged and wait for more data before taking action.

The partially convertible currency is currently trading at 62.30, stronger by 8 paise from its previous close of 62.38 on Thursday. The currency touched a high and low of 62.37 and 62.28 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 62.50 and for Euro stood at 84.49 on February 6, 2014. While, the RBI’s reference rate for the Yen stood at 61.59, the reference rate for the Great Britain Pound (GBP) stood at 101.9198. The reference rates are based on 12 noon rates of a few select banks in Mumbai.

Date1US$1GBP
February 6, 201462.50 101.9198
February 5, 201462.45 102.0099
(RBI-Reference Rate)

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