update

Rupee trades near four and half month low on Wednesday

     Indian rupee, after snapping two consecutive sessions appreciating streak, was trading near four and half month low on Wednesday as broad gains in dollar against other major currencies were weighing on the sentiment. Besides, demand for the American currency from oil importers also put pressure on the local unit. Additionally, negative local equities also were adding to the pessimistic milieu for local currency. On the global front, dollar held near an 11-month high against a basket of major currencies on Wednesday, supported by upbeat U.S. data, while the New Zealand dollar took a hit from a fall in dairy prices. Helping to support the dollar, data on Tuesday showed U.S. services sector activity hit an 8-1/2 year high last month and factory orders surged in June, bolstering expectations of solid economic growth in the third quarter.

     The partially convertible currency is currently trading at 61.34, weaker by 50 paise from its previous close of 60.84 on Tuesday. The currency touched a high and low of 61.42 and 61.06 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 60.86 and for Euro stood at 81.69 on August 05, 2014. While, the RBI’s reference rate for the Yen stood at 59.38, the reference rate for the Great Britain Pound (GBP) stood at 102.6738. The reference rates are based on 12 noon rates of a few select banks in Mumbai.