Indian rupee, surrendering early gains concluded weak against dollar on Monday on fresh dollar demand from banks and oil importers. Capital outflows, in small lots also weighed on the rupee, however positive local equities restricted the fall of rupee to some extent. Sentiment to some extent also took a hit after commerce ministry data revealed that India's foreign trade deficit narrowed by 6.8% in April to $10.99 billion from $11.79 billion in the previous month, but was higher by 9% when compared with $10.09 billion trade deficit in April 2014. On the global front, dollar languished around a three-month low against the euro in early Asian trade on Monday after downbeat U.S. economic data bolstered expectations that the Federal Reserve will wait longer to raise U.S. interest rates.
Finally, the rupee ended at 63.72, weaker by 21 paise from its previous close of 63.51 on Friday. The currency touched a high and low of 63.75 and 63.46 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 63.55 and for Euro stood at 72.67 on May 18, 2015. While, the RBI’s reference rate for the Yen stood at 53.12, the reference rate for the Great Britain Pound (GBP) stood at 99.8629. The reference rates are based on 12 noon rates of a few select banks in Mumbai.
