Rupee appreciates on Fed’s further stimulus possibility

21 Sep 2011 Evaluate

Indian rupee after plunging to a two year’s low level in the previous session has appreciated on Wednesday owing to the continued foreign capital inflows into the Indian equity markets amidst euro gains against the American currency overseas. Risk appetite making a small comeback across world equities owing to the optimism for progress on Greece’s debt crisis as well as prospects for economic stimulus from the U.S. Federal Reserve has also propped up Indian currency in sync with that of regional currencies. The euro after having fully recovered following Italy's downgrade has rallied against the greenback on Wednesday, on the possibility of further stimulus from the Federal Reserve.

The partially convertible currency is currently trading at 47.88, stronger by 18 paise from its previous close of 48.06 on Tuesday. It touched a high and low of 47.9825 and 47.8350 respectively. The Reserve Bank of India's reference rate for the dollar stood at 48.22 and for Euro it stood at 65.64 on September 20, 2011. While, the RBI's reference rate for the Yen stood at 63.02 and the reference rate for the Great Britain Pound (GBP) stood at 75.6322. The reference rates are based on 12 noon rates of a few select banks in Mumbai.