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Rupee gives away early gains tailing losses in local equities

13 Feb 2014 Evaluate

Indian rupee, snapping two consecutive sessions’ appreciating streak and giving away all the early euphoria, turned weak against dollar on Thursday on back of losses of local equity markets. In the initial part of the session, the local currency gained momentum after retail inflation came much below the street’s expectation at 24 months low of 8.79% for the month of January, providing some relief to the ruling Congress party ahead of national polls. However, subdued IIP for December which stood at -0.8% also restricted gains of local equities. On the global front, euro nursed losses early on Thursday, having suffered a setback on dovish comments from a top European Central Bank official, while a surprisingly upbeat economic outlook from the Bank of England gave the sterling a shot in the arm.

The partially convertible currency is currently trading at 62.25, weaker by 15 paise from its previous close of 62.10 on Wednesday. The currency touched a high and low of 62.32 and 62.05 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 62.12 and for Euro stood at 84.72 on February 12, 2014. While, the RBI’s reference rate for the Yen stood at 60.60, the reference rate for the Great Britain Pound (GBP) stood at 102.2515. The reference rates are based on 12 noon rates of a few select banks in Mumbai.

Date1US$1GBP
February 12, 201462.12 102.2515
February 11, 201462.43 102.4811
(RBI-Reference Rate)

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