Indian rupee brawls against global pessimism; gains marginal traction

02 Nov 2011 Evaluate

Indian rupee after logging its biggest single session fall in 2 weeks in the previous session has recovered a tad on Wednesday tracing the positive momentum of local equities along with recuperation of euro. Although weak regional counterparts have sustained the subdued trend, but the turnaround of the Indian equities has mainly led to resurgence. Indian currency had edged lower in early deals as concerns over Europe's debt crisis worsening, eroded global risk appetite, thereby hurting regional counterparts and euro, which eventually weighed on the local unit. On the global front, the euro nudged up on Wednesday, moving away from a three-week trough marked the day before, as investors covered short positions following its worst two-day fall since May with jitters over Greece's referendum set to cap any bigger gains.

The partially convertible currency is currently trading at 49.23, stronger by 3 paise from its previous close of 49.26 on Tuesday. It has touched a high and low of 49.40 and 49.21 respectively. The Reserve Bank of India's reference rate for the dollar stood at 49.07 and for Euro it stood at 67.75 on November 01, 2011. While, the RBI's reference rate for the Yen stood at 62.82 and the reference rate for the Great Britain Pound (GBP) stood at 78.7817. The reference rates are based on 12 noon rates of a few select banks in Mumbai.