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Rupee weakens further on Wednesday; slips past 61/$ level

12 Mar 2014 Evaluate

Indian rupee, which reversed all the intra-day gains to end substantially weak in previous session, continued to trade weaker past the perilous ‘61/$ level in early deals on Wednesday, despite positive local equities. Indian rupee got a knock after India decided to put on ice plans to join major global bond indexes, which have had required removal of restrictions on capital inflows. Besides, increased dollar demand from importers also hurt the sentiment. On the global front, yen held firm on Wednesday while investors kept their distance from riskier currencies such as the Australian dollar amid worries about China's economic health and tensions over Russia's seizure of the Crimea region of Ukraine.

The partially convertible currency is currently trading at 61.11, weaker by 16 paise from its previous close of 60.95 on Tuesday. The currency touched a high and low of 61.15 and 61.03 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.

Date1US$1GBP
March 11,201460.69 100.9675
March 10,201461.19 102.3511
(RBI-Reference rate)

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