Rupee depreciates to nearly month low level on Wednesday

Indian rupee, depreciating for second consecutive session, weakened to its weakest level in nearly a month on Wednesday, tracking falls in emerging markets on worries that U.S. Federal Reserve would raise interest rates at its next policy meeting on September 16-17, while losses of local equities also weighed on the sentiment. However, exporters' dollar sales capped broader falls in Indian currency amidst prevailing caution ahead of release of crucial macro-economic data such as July industrial output and August Retail inflation. While, the street expects Industrial production to grow 1.8% from a year earlier in July, slower than June's 3.4% increase, India's consumer price inflation, closely tracked by the Reserve Bank of India, is also expected to edge lower to 7.80% in August from July's 7.96%. On the global front, dollar rose to a new six year high against the yen on Wednesday, as the Australian dollar nursed a second session of heavy losses after further gains in US treasury yields.

Finally the rupee ended at 60.95, weaker by 35 paise from its previous close of 60.60 on Tuesday. The currency touched a high and low of 61.05 and 60.75 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 60.82 and for Euro stood at 78.65 on September 10, 2014. While, the RBI’s reference rate for the Yen stood at 57.12, the reference rate for the Great Britain Pound (GBP) stood at 98.1482. The reference rates are based on 12 noon rates of a few select banks in Mumbai.