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Rupee ends weak ahead of the May WPI data

13 Jun 2011 Evaluate

Rupee ended weak on Monday tracking the weakness in the local equities and Asian currencies amid good demand for the American currency from banks and importers. The firming greenback in overseas market too spoiled the sentiment for the domestic currency. Local equities edged lower ahead of the May WPI data which is expected to provide some cues on RBI’s actions in its monetary policy review on June 16, 2011. However, the downside of the currency was limited to an extent due to its demand on account of corporate advance tax outflows. Meanwhile, on the global front, the euro stroked a record low on Monday, as investors worried at policymakers' struggles over the Greek debt crisis cut their exposure to the common currency

Finally the Rupee ended at 44.86 weaker by 15 paise from its previous close of 44.71 on Friday. It touched a high and low of 44.90/91 and 44.82/83 respectively. The Reserve Bank of India's reference rate for the US Dollar stood at 44.87 and for Euro it stood at 64.37 on June 13, 2011. While, the RBI's reference rate for the Yen stood at 55.78 and the reference rate for the Great Britain Pound (GBP) stood at 72.8285. The reference rates are based on 12 noon rates of a few select banks in Mumbai.

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