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Rupee ends flat on late dollar buying

13 Mar 2014 Evaluate

Indian rupee, squandering a good start and reversing all the intra-day gains, ended flat on Thursday despite the release of good set of macro-economic data, whereby January factory output posted growth for the first time in four months at 0.1% and Retail inflation eased more than expected at a 25-month high of 8.10% in February. Indian currency reversed all its intra-day gains in the late trade and ended at day's low point, tracing the fall of local equity markets, which ended up with loss of over quarter of a percent. Additionally, gains of Indian currency were doused by expectation of central bank keeping rates on hold in April’s monetary policy review. Meanwhile, late dollar buying by state-run banks and oil importers also added to the negative milieu. On the global front, prospect of further inflows of capital and a lack of any easing in European monetary policy helped the euro back to 2-1/2 year highs on Thursday.

Finally, the rupee ended at 61.18, almost unchanged from its previous close of 61.21 on Wednesday. The currency touched a high and low of 61.18 and 60.91 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 61.01 and for Euro stood at 85.02 on March 13, 2014. While, the RBI’s reference rate for the Yen stood at 59.46, the reference rate for the Great Britain Pound (GBP) stood at 101.6518. The reference rates are based on 12 noon rates of a few select banks in Mumbai.

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