Rupee falls against American currency ignoring local shares gain

Indian rupee lost against American currency snapping yesterday’s gains despite higher openings in the local equity markets. Increase in dollar's demand kept pressure on the local currency. Investors remained cautious as weakness in the euro continued to increase worries over the outlook for the euro zone. However, Reserve Bank of India had taken some measures to limit the rupee’s fell, but was unable to do the same. Meanwhile rupee had increased as much as 82 paise to a dollar in the last three days, extending a turnaround of sentiment from last Thursday when the rupee was at its all-time weak.

The partially convertible currency is currently trading at 55.63, weaker by 45 paise from its previous close of 55.18 on Monday. It has touched a high and low of 55.66 and 55.42 respectively. The Reserve Bank of India's (RBI) reference rate for the dollar stood at Rs 55.26 and for Euro it stood at Rs 69.63 on May 28, 2012. While, the RBI’s reference rate for the Yen stood at 69.63, the reference rate for the Great Britain Pound (GBP) stood at 86.8008. The reference rates are based on 12 noon rates of a few select banks in Mumbai.

(RBI-reference rate)