Indian rupee, after making a weak start and sinking to week-low levels, recovered substantial ground and ended flat on Thursday on account of dollar sales by custodian banks. However, colossal losses of local equity market after the U.S. Federal Reserve's latest policy meeting showed it remained on track to taper its stimulus despite a recent spate of downbeat U.S. economic data that sapped global risk appetite, mainly curbed the gains of Indian currency. Additionally, losses of other emerging market currencies also weighed on the sentiment. Emerging Asian currencies slid on Thursday, led by the South Korean won on concerns over a slowing Chinese economy and as the Fed is seen scaling back its stimulus at the current pace of $10 billion a month.
Finally, the rupee ended at 62.23, almost unchanged from its previous close of 62.22 on Tuesday. The currency touched a high and low of 62.44 and 62.20 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 62.28 and for Euro stood at 85.69 on February 20, 2014. While, the RBI’s reference rate for the Yen stood at 61.17, the reference rate for the Great Britain Pound (GBP) stood at 103.8404. The reference rates are based on 12 noon rates of a few select banks in Mumbai.
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