Rupee trades flat against American currency

Following RBI’s disappointing monetary policy, Indian rupee weakened against American currency amid increasing dollar demand by banks and importers. Concerns about eurozone crisis, which may spread over to Spain and Italy were also making rupee weak. Meanwhile rupee erased some losses in late morning session after its sharp contraction against dollar in the previous session. Investors are now expecting RBI’s intervention in spot markets. However, euro pared some losses, which continued after Spain's borrowing costs spiked to euro-era highs, ahead of a debt sale.

The partially convertible currency is currently trading at 55.95, weaker by 2 paise from its previous close of 55.93 on Monday. It has touched a high and low of 56.08 and 55.90 respectively. The Reserve Bank of India's (RBI) reference rate for the dollar stood at Rs 55.59 and for Euro it stood at Rs 70.66 on June 18, 2012. While, the RBI’s reference rate for the Yen stood at 70.18, the reference rate for the Great Britain Pound (GBP) stood at 87.3405. The reference rates are based on 12 noon rates of a few select banks in Mumbai.