Rupee turns weak on dollar demand by importers

Indian rupee, after a weak start coming out of a long weekend, lost substantial ground on Monday on dollar demand by gas and oil importers. Although, the equity markets moved higher supported by FII inflows but the domestic currency remained in somber mood tailing weakness in other regional peers. State-run banks reportedly bought dollars on behalf of state-run oil companies; however there was some selling by few foreign banks that helped limit losses. In the global markets, the dollar stayed firm on upbeat US economic data and on caution over tensions in Ukraine.

Finally, the rupee ended at 60.60, weaker by 31 paise from its previous close of 60.29 on Thursday. The currency touched a high and low of 60.60 and 60.31 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 60.33 and for Euro stood at 83.38 on April 21, 2014. While, the RBI’s reference rate for the Yen stood at 58.85, the reference rate for the Great Britain Pound (GBP) stood at 101.4050. The reference rates are based on 12 noon rates of a few select banks in Mumbai.