The rupee opened on a feeble note at 69.09 then fell further to 69.17 against the US dollar, at the Interbank Foreign Exchange Market. However, the local units removed the early gains and finished down by just 1 paisa over its previous close at Rs. 68.96.
The swap auction of the rupee-dollar by the RBI earlier in March will infuse Rs. 35,000 crore into the system. The auction for the tenure of three years of $5 billion will be conducted today.
The currency, sovereign-debt and credit markets are seen to be in the waiting mode to see the result of this new swap auction. This move could be largely being seen as one of RBI buying dollars to create domestic liquidity
The Financial Benchmark India Private Ltd (FBIL) has set the reference rate for rupee/dollar at 68.9903 and for rupee/euro at 77.9735. The reference rate for Rupee/British pound was fixed at 90.8731 and for rupee/100 Japanese Yen at 62.76.