Rupee recovers from 2-week’s low on Wednesday

02 Nov 2011 Evaluate

Indian rupee after logging its biggest single session fall in 2 weeks on Tuesday, recovered marginally on Wednesday tracing positive momentum of the euro amidst mixed close of Indian equity markets. Indian currency had edged lower in the afternoon deals as Greek referendum triggered a wave of risk aversion and flows into the dollar, which eventually weighed on the local unit. Global risk appetite dwindled post Greece's Prime Minister won the backing of his cabinet to hold a referendum on a 130 billion euro bailout package reached just last week, which sparked fears of a disorderly default on the country's debt if Greeks voted against the package. On the global front, euro edged up on Wednesday, rebounding from a three-week low against the dollar as investors took a breather from a deep sell-off in the past two days, although it was vulnerable to the downside on jitters over Greece's referendum.

Finally the rupee ended at 49.21, weaker by 5 paise from its previous close of 49.26 on Tuesday. It has touched a high and low of 49.40 and 49.15 respectively. The Reserve Bank of India's reference rate for the dollar stood at Rs 49.25 and for Euro it stood at 67.64 on November 02, 2011. While, the RBI's reference rate for the Yen stood at 63.06 and the reference rate for the Great Britain Pound (GBP) stood at 78.7348. The reference rates are based on 12 noon rates of a few select banks in Mumbai.

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