Rupee weakens post RBI hikes the key policy rates by 25 bps

Indian rupee weakened for the second consecutive session tracking slide in the euro and lower Asian equities. Meanwhile, domestic unit also tracing the Indian equity markets depreciated as the local shares tanked off substantial points post Reserve Bank of India in its mid-quarter monetary Policy Review furthered its aggressive stance against the rampant inflation, thereby hiking repo rate and reverse repo rate by 25 basis points each to 7.50% and 6.50% respectively.

However, the decline in the weekly food inflation just went unnoticed for the Indian equity markets. India's food Inflation after soaring to its two moth’s high level in the previous week eased marginally to 8.96% on annual basis during week-ended June 4, 2011.

The partially convertible Rupee is currently trading at 44.87, weaker by 10 paise from its previous close of 44.77 on Wednesday. It has touched a high and low of 44.9150 and 44.8250 respectively. The Reserve Bank of India's reference rate for the US Dollar stood at 44.68 and for Euro it stood at 64.29 on June 15, 2011. While, the RBI's reference rate for the Yen stood at 55.53 and the reference rate for the Great Britain Pound (GBP) stood at 73.0451. The reference rates are based on 12 noon rates of a few select banks in Mumbai.

(RBI-Reference Rate)