Rupee appreciates to three-week high on large dollar demand from foreign banks

   

 Indian rupee appreciated to three-week high on Wednesday on likely dollar sales by large foreign banks for investments in debt markets. Indian currency after treading water in the first half of the session, witnessed momentum in second half on account of large dollar demand from foreign banks. Nevertheless, dollar gains against other majors and losses of local equities provided a lid to further uptick of Indian currency. On the global front, dollar jumped on Wednesday to its highest levels against the euro and a basket of major currencies since last September, returning to gains after a shaky start to August that called into question its broader strength
     Finally the rupee ended at 60.62, stronger by 6 paise from its previous close of 60.68 on Tuesday. The currency touched a high and low of 60.88 and 60.52 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 60.66 and for Euro stood at 80.72 on August 20, 2014. While, the RBI’s reference rate for the Yen stood at 58.80, the reference rate for the Great Britain Pound (GBP) stood at 100.8076. The reference rates are based on 12 noon rates of a few select banks in Mumbai.