Rupee recovers from day's low; ends substantially lower on Monday

Indian rupee, despite recovering from the low's, ended weak on Monday after data showed the current-account deficit widened in the quarter through June and also as mounting concern over the impact of Europe's debt crisis on the global economic growth sapped the demand for emerging-market assets. India's current account deficit widened to $14.1 billion in the June quarter, compared with $12 billion in the same period a year ago. Besides this factor, abysmal performance of the local equity markets coupled with that of the regional counterparts also spooked the sentiment of the Indian currency. Meanwhile, the euro which hovered near an eight-month trough against the dollar and a decade low against the yen on Monday, also added to the pressure.

Finally the rupee ended at 49.15, weaker by 19 paise from its previous close of 48.96 on Thursday. It touched a high and low of 49.55 and 49.15 respectively. The Reserve Bank of India's reference rate for the dollar stood at 49.42 and for Euro it stood at 65.84 on October 3, 2011. While, the RBI's reference rate for the Yen stood at 64.15 and the reference rate for the Great Britain Pound (GBP) stood at 76.7209. The reference rates are based on 12 noon rates of a few select banks in Mumbai.