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Rupee makes a weak start reacting to comments from Fed Chair

20 Mar 2014 Evaluate

Indian rupee has made a weak start on Thursday morning, reacting to the hawkish stance of the US Federal Reserve Chairwomen Janet Yellen signaling Fed may raise US interest rates from the middle of next year. All the emerging market currencies are under pressure with the Fed’s action of further cutting its bond buying and interest rate hike expectations. The domestic currency had appreciated to close at a nearly one-week high in last session, but today it is being weighed down by the weak trade in domestic as well as global equity markets. In the global markets the dollar traded at two-week highs against a basket of major currencies.

The partially convertible currency is currently trading at 61.21, weaker by 25 paise from its previous close of 60.96 on Wednesday. The currency touched a high and low of 61.36 and 61.20 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 61.09 and for Euro stood at 85.07 on March 19, 2014. While, the RBI’s reference rate for the Yen stood at 60.18, the reference rate for the Great Britain Pound (GBP) stood at 101.4149. The reference rates are based on 12 noon rates of a few select banks in Mumbai. 

Date1US$1GBP
March 19, 201461.09 101.4149
March 18, 201460.94 101.3703
(RBI-Reference rate)

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