Rupee appreciates against dollar on foreign funds inflows

Indian rupee appreciated against dollar as decline in uncertainties of funding crunch in the euro zone economies strengthen hopes for capital flows into riskier assets. However foreign funds inflows mainly supported the rupee but dollar's gains against the euro overseas and dollar demand from domestic oil refiners restricted the gains. Equity markets held firm despite disappointing revenue and profit growth guidance by IT bellwether Infosys also aided the local currency. Meanwhile Asian shares pared early gains on Friday after China's first-quarter growth was slower than expected, clouding the outlook for demand.

The partially convertible currency is currently trading at 51.40, stronger by 18 paise from its previous close of 51.58, on Thursday. It has touched a high and a low of 51.43 and 51.34 respectively. The Reserve Bank of India's (RBI) reference rate for the dollar stood at Rs 51.44 and for Euro it stood at Rs 67.60 on April 12, 2012. While, the RBI's reference rate for the Yen stood at 63.52 the reference rate for the Great Britain Pound (GBP) stood at 81.9625. The reference rates are based on 12 noon rates of a few select banks in Mumbai.