Currency Update: Rupee trades flat

Rupee was unmoved today as prices for the local currency were flat in early session. The Rupee traded flat at Rs 105.40 and Rs 105.41, unchanged over the last close.

The Rupee gained 40 paisas in the open market, up by 0.38%, 70 paisas against GBP and 37 paisas against the Euro in open market.

Pressures have been mounting from different sectors in the industry for Rupee devaluation. However, Finance Minister and Prime Minster have resisted any pressures from outside forces. In a interview given to international News Agency, he said that Rupee devaluation has been discussed long and hard but the result of such step is not the best of interests to the economy.

The rationale for the move against devaluation has been that it would not change the economic health of the country for better. The devaluation will end in a zero sum gain as it will offset any benefit to trade by the debt servicing costs.