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Rupee shaves off intra-day gain; ends weak on Tuesday

11 Mar 2014 Evaluate

Indian rupee, reversing most of the early morning gains, ended weak against dollar on Tuesday, tracing the losses of local equity markets, which took a breather of three consecutive sessions’ record breaking run. Indian currency fell after government sources reported that country has put plans for inclusion in a global bond index on hold, which would have required the government to ease restrictions on foreign capital inflows. The local unit failed to drew any sense of relief from Feb trade deficit data which recorded its steepest fall since September 2013, though country’s exports that declined once again after a span of seven months marred the achievement. Meanwhile, on the global front, yen wobbled in a narrow range in early Asian trade on Tuesday, as investors awaited the latest policy decision from the Bank of Japan later in the session.

Finally the rupee ended at 60.95, weaker by 11 paise from its previous close of 60.84 on Monday. The currency touched a high and low of 60.97 and 60.60 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 60.69 and for Euro stood at 84.15 on March 11, 2014. While, the RBI’s reference rate for the Yen stood at 58.78, the reference rate for the Great Britain Pound (GBP) stood at 100.9675. The reference rates are based on 12 noon rates of a few select banks in Mumbai.

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