Rupee depreciates as global risk appetite dwindles

Indian rupee after hitting strongest level in two weeks in the previous session, depreciated substantially against dollar on the last trading day of the week, on accelerating demand for American green back among oil importers. Reduced global risk appetite on signs of no early policy response in the U.S. after US Federal Reserve Chairman Ben Bernanke gave no hint of immediate action to jump-start growth in the world's No. 1 economy, besides dampening the sentiment at Dalal Street, weighed on the currency. Meanwhile, subdued performance of Asian counterparts, which shrugging off the surprise rate cut, also added to the pessimistic milieu.

The partially convertible currency is currently trading at 55.31, weaker by 37 paise from its previous close of 54.94 on Thursday. It has touched a high and low of 55.31 and 55.15 respectively. The Reserve Bank of India's (RBI) reference rate for the dollar stood at Rs 55.14 and for Euro it stood at Rs 69.24 on June 7, 2012. While, the RBI’s reference rate for the Yen stood at 69.51, the reference rate for the Great Britain Pound (GBP) stood at 85.2219. The reference rates are based on 12 noon rates of a few select banks in Mumbai.