Rupee depreciates further on weak equity and subdued dollar inflows

Indian rupee extended its southbound journey for the second consecutive session on Wednesday amid few participants in the local foreign exchange market as the year draws to a close. Month-end dollar demand from importers, mainly oil refiners, coupled with a higher dollar in overseas markets, affected the rupee value against the dollar. Unenthusiastic response in the domestic equities and subdued dollar inflows added to the selling pressure on the rupee. Gains posted by the US dollar against Asian currencies overseas also added subdued pressure on local currency.

Finally the rupee ended at 53.08, weaker by 6 paise from its previous close of 53.02 on Tuesday. It has touched a high and a low of 53.43 and 53.00 respectively. The Reserve Bank of India's reference rate for the dollar stood at Rs 53.2145 and for Euro it stood at 69.5113 on December 28, 2011. While, the RBI's reference rate for the Yen stood at 68.39 and the reference rate for the Great Britain Pound (GBP) stood at 83.3179. The reference rates are based on 12 noon rates of a few select banks in Mumbai.