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Rupee turns weak on incremental dollar demand and weak local equities

03 Apr 2014 Evaluate

Indian rupee, after ending flat in the previous trading session, was trading weak against dollar on Friday on account of incremental dollar demand and negative local equities, which weighed negatively on the sentiment of Indian currency. Additionally, RBI chief’s comments on the rupee being too strong at ‘55/$’ soured sentiments. Meanwhile, mixed Asian counterparts also failed to lend any support to the rupee. On the global front, euro inched lower versus the dollar on Thursday, staying on the defensive as the market turned cautious on expectations the European Central Bank may sound dovish following its policy review later in the day.

The partially convertible currency is currently trading at 60.14, weaker by 25 paise from its previous close of 59.89 on Wednesday. The currency touched a high and low of 60.15 and 59.83 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 59.64 and for Euro stood at 82.39 on April 02, 2014. While, the RBI’s reference rate for the Yen stood at 57.48, the reference rate for the Great Britain Pound (GBP) stood at 99.2097. The reference rates are based on 12 noon rates of a few select banks in Mumbai.

Date1US$1GBP
April 02, 201459.64 99.2097
March 28, 201460.0999.8498
(RBI-Reference Rate)

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