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Rupee scales fresh low’s for third consecutive session

14 Dec 2011 Evaluate

With no measures forthcoming to stimulate growth from the U.S. Federal Reserve, Indian rupee slumped to new lows for third consecutive session on Wednesday, as global risk aversion sapped the demand of beleaguered currency. Fed’s policy meeting on Tuesday was a letdown for the many investors looking for any change in policies as Fed in a much disappointing move left its policy rate unchanged and decided against any further additional stimulus measures for now.

Besides risk aversion, pronounced losses in local equities amidst weaker regional counterparts also spooked the sentiment of Indian currency. Local equities slid fast and deep in red post November’s inflation despite easing from a month earlier, came higher above the street’s expectation at 9.11% against 9.73% in October.

On the global front, euro wallowed near 11-month lows against the dollar on Wednesday and crept close to an option barrier whose break could rapidly speed up its decline, with an Italian bond sale coming into focus later in the day.

The partially convertible currency is currently trading at 53.56, weaker by 33 paise from its previous close of 53.23 on Tuesday. It has touched a high and low of 53.85 and 53.52 respectively. The Reserve Bank of India's reference rate for the dollar stood at Rs 53.40 and for Euro it stood at 70.44 on December 13, 2011. While, the RBI's reference rate for the Yen stood at 68.58 and the reference rate for the Great Britain Pound (GBP) stood at 83.3247. The reference rates are based on 12 noon rates of a few select banks in Mumbai.

Date1US$1GBP
December 13, 201153.40 83.3247
December 12, 201152.4281.9227
RBI-Reference Rate

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