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Rupee strengthens on easing global concern and mild dollar selling

05 Mar 2014 Evaluate

Indian rupee despite a flat opening showed a great bit of resilience amid weakness in other emerging market currencies. Forex trade remained choppy for the day, tailing the equity markets and after the announcement of election schedule coupled with report of eighth consecutive month of contraction for the Services activity. However, the local currency by the end strengthened with mild selling of dollars by banks and exporters, and besides a higher closing of domestic equity market, easing geopolitical tension between Russia and Ukraine, too boosted the sentiment. On the global front, the dollar rose against the basket of other major currencies, as investors appeared to be reassured by the easing concern from Ukraine.

Finally the rupee ended at 61.77, stronger by 8 paise from its previous close of 61.85 on Tuesday. The currency touched a high and low of 61.91 and 61.65 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 61.85 and for Euro stood at 84.91 on March 5, 2014. While, the RBI’s reference rate for the Yen stood at 60.56, the reference rate for the Great Britain Pound (GBP) stood at 103.0566. The reference rates are based on 12 noon rates of a few select banks in Mumbai.

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