Rupee extends previous sessions weakness on back of subdued local equity markets

sankrit

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Indian rupee, extending previous sessions’ weakness, was trading weaker against dollar on Tuesday, tailing the sluggish trend of local equities on the back of murky CPI data, which added to the string of dismal macroeconomic indicators of the country, increasing the odds of another rate hike by RBI in quarterly monetary policy review later this month. Inflation based on the Consumer Price Index (CPI), the retail inflation, reversing its two months easing trend accelerated to 9.84% in September as against 9.52% in the previous month. Meanwhile, fresh dollar demand for American currency amidst its strength overseas, also weighed on the sentiment. On the global front, dollar held firm on Tuesday, hitting a two-week high against the yen as top U.S. senators signalled they could soon reach a bipartisan deal to reopen the government and avert an immediate debt default.

The partially convertible currency is currently trading at 61.68, weaker by 13 paise from its previous close of 61.55 on Monday. The currency has touched a high and low of 61.73 and 61.31 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 61.30 and for Euro it stood at 83.14 on October 14, 2013. While, the RBI’s reference rate for the Yen stood at 62.40, the reference rate for the Great Britain Pound (GBP) stood at 97.9877. The reference rates are based on 12 noon rates of a few select banks in Mumbai.

Source:-Berkeleygains
 
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