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Rupee trades past perilous ‘62/$’ level on pent up dollar demand

18 Feb 2014 Evaluate

Indian rupee, after opening lower, lost some more ground and was trading way lower, past the perilous ‘62/$’ level on Tuesday on account of pent up dollar demand, given that US markets were closed on Monday. Additionally, dollar’s strength against basket of other major currencies, also added to the underlying weakness of Indian currency. Nevertheless, the gains of local equities to some extent were restricting the further slide of the Indian currency. On the global front, yen inched down against its major counterparts in early trade on Tuesday, as investors waited to see if the Bank of Japan would hold policy steady as expected and perhaps hint at the possibility of further easing ahead.

The partially convertible currency is currently trading at 62.14, weaker by 29 paise from its previous close of 61.85 on Monday. The currency touched a high and low of 62.14 and 62.02 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 61.94 and for Euro stood at 84.94 on February 17, 2014. While, the RBI’s reference rate for the Yen stood at 60.97, the reference rate for the Great Britain Pound (GBP) stood at 104.0194. The reference rates are based on 12 noon rates of a few select banks in Mumbai.

Date1US$1GBP
February 17, 201461.94 104.0194
February 14, 201462.27 103.6663

(RBI-Reference Rate)

 

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