Indian rupee, after pausing in previous session, resumed its appreciating streak and ended at day’s high point on Tuesday on account of narrower than expected January trade deficit, which stood at $9.91 billion as compared to $10.14 billion in December and way lower than $18.98 billion in the corresponding month of the previous year, mainly on account of sharp drop of 18.07% in imports. Additionally, slender gains of local equities and gains of other emerging markets currencies against dollar also added to optimism of Indian currency. On the global front, dollar fell to its lowest level in almost two weeks on Tuesday ahead of congressional testimony by new U.S. Federal Reserve chief Janet Yellen that could give clues on how quickly the Fed will cut back its stimulus programme.
Finally the rupee ended at 62.22, stronger by 22 paise from its previous close of 62.44 on Monday. The currency touched a high and low of 62.44 and 62.21 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 62.43 and for Euro stood at 85.28 on February 11, 2014. While, the RBI’s reference rate for the Yen stood at 61.01, the reference rate for the Great Britain Pound (GBP) stood at 102.4811. The reference rates are based on 12 noon rates of a few select banks in Mumbai.
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