Rupee recoups losses tailing record high local equities on Wednesday

Indian rupee, after making a weaker start, has trimmed some of its losses tailing the record high levels of local equity markets, though weakness of other Asian currency was restricted its uptrend. Additionally, hopes of good macro-economic data were aiding sentiment. On the macro front, street widely expects factory output to rise for the first time in April since January, to reflect healthy growth in core industries, while consumer price index is also expected to ease. Nevertheless, RBI’s intervention in later part of the session could hinder currency’s further recovery attempts. On the global front, euro neared a four-month low on Wednesday, after the dollar's yield advantage over the single currency widened in the wake of upbeat U.S. economic data and the European Central Bank's monetary easing. The partially convertible currency is currently trading at 59.32, weaker by 3 paise from its previous close of 59.29 on Tuesday. The currency has touched a high and low of 59.37 and 59.30 respectively.  The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 59.24 and for Euro stood at 80.59 on June 10, 2014. While, the RBI’s reference rate for the Yen stood at 57.95, the reference rate for the Great Britain Pound (GBP) stood at 99.6299. The reference rates are based on 12 noon rates of a few select banks in Mumbai. Date 1US$ 1GBP June 10, 2014 59.24 99.6299 June 9, 2014 59.06 99.3457 (RBI-Reference Rate)