Rupee treads water in absence of any positive trigger on Wednesday

Indian rupee, extending its consolidation phase, was treading water for yet another session in absence of any positive trigger which could lift the currency higher, with month-end dollar demand from importers and negative local equities further weighing on the sentiment. Additionally, dollar’s strength against other major currencies ahead of the U.S. GDP data and conclusion of the Fed's two-day meeting also was restricting any kind of upside of local currency. Dollar bulls were holding out hope that U.S. second quarter gross domestic product will show the economy has rebounded from a very soft patch and that the Federal Reserve will provide some hints on when it will raise interest rate

The partially convertible currency is currently trading steady at Monday’s close of 60.14. The currency touched a high and low of 60.21 and 60.13 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 60.10 and for Euro stood at 80.73 on July 28, 2014. While, the RBI’s reference rate for the Yen stood at 59.00, the reference rate for the Great Britain Pound (GBP) stood at 102.0400. The reference rates are based on 12 noon rates of a few select banks in Mumbai.

(RBI-Reference Rate)