Indian rupee weakened against dollar on Thursday due to dollar demand from investors looking to safeguard their investments in India following the sharp fall in the local currency this week. Meanwhile, incremental dollar demand from banks and importers also weighed on the rupee. Though, gains of local equities, industrial production growing at a 4-month high of 3.8% in June and inflation falling to 3.78% in July, limited further slide of Indian currency. On global front, dollar moved higher against the basket of other major currencies, as market turmoil sparked by the devaluation of the Yuan in China began to subside and investors returned their attention to a potential U.S. rate hike in September.
Finally, the rupee ended at 65.10, 33 paise weaker from its previous close of 64.77 on Wednesday. The currency touched a high and low of 65.23 and 64.63 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 64.92 and for Euro stood at 72.25 on August 13, 2015. While, the RBI’s reference rate for the Yen stood at 52.16, the reference rate for the Great Britain Pound (GBP) stood at 101.4394. The reference rates are based on 12 noon rates of a few select banks in Mumbai
