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Rupee carry-forwards weakness to fresh week

12 Dec 2011 Evaluate

Indian rupee carry-forwarded its weakness to fresh week after market participants doubting the value of the home currency resorted to the safety of dollar after factory output data dropping to a worst than 28-month low in October stood at -5.1%, indicated a severe slowdown in the country’s growth trajectory. However, positive regional counterparts to some extent limited the fall of Indian rupee, which tracing the underlying weakness of local equities, plunged in early deals. On the global front, euro dipped in Asia on Monday after the European Union fell short of a convincing plan to deal a decisive blow to the euro area debt crisis.

Back on the home turf, in an unexpected and dramatic trend reversal, industrial output growth dropped in October at -5.1%. However, Industrial output growth in September, which had been provisionally estimated at 1.9%, now stands to be revised to 2%.

The partially convertible currency is currently trading at 52.47, weaker by 44 paise from its previous close of 52.03 on Friday. It has touched a high and low of 52.49 and 52.12 respectively. The Reserve Bank of India's reference rate for the dollar stood at Rs 52.22 and for Euro it stood at 69.60 on December 9, 2011. While, the RBI's reference rate for the Yen stood at 67.33 and the reference rate for the Great Britain Pound (GBP) stood at 81.5496. The reference rates are based on 12 noon rates of a few select banks in Mumbai.

Date1US$1GBP
December 9, 201152.22 81.5496
December 8, 201151.77 81.3225
RBI-Reference Rate

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