The Reserve Bank of India Monday fixed the reference rate for the U.S. dollar at 51.3925 rupees and the euro at 68.9227 rupees.
The corresponding rates of dollar and euro for Friday were 51.3523 rupees and 69.1380 rupees respectively.
Based on the reference rate for the U.S. dollar and middle rates of the cross-currency quotes, the exchange rates of British pound as against the rupee is 80.2031 as against 80.5050 on the previous day and that of Japanese yen is 65.91 as against 66.02 the previous day.
RBI not Changing Method of Arriving at the Reference Rate of Rupee
Forex dealers are of the opinion that RBI's method of arriving at the reference rate of the rupee against the dollar, euro and yen is not suitable, as a small window may not reflect the market range properly. However, the RBI deputy governor H R Khan said that they are not planning to change the methodology but would seek feedback on it if needed.
The RBI publishes reference rate which is used by foreign exchange market participants while quoting for deals. The methodology to arrive at the reference rate was revised in July, wherein rates taken from a two-hour window were averaged and window is shrunk to half an hour after a few days. RBI selects banks based on their standing, market-share in the domestic foreign exchange market and representative character, and then takes the average rate at a randomly chosen five-minute window between 11.45 am and 12.15 pm.