Indian rupee extending weakness for the second day ended weaker against dollar on good demand for the greenback from banks and importers on Friday. Further, volatility in the domestic equity market which lost their momentum and ended flat also weighed on domestic currency. Investors also overlooked the statement of the group headed by Reserve Bank of India Governor Raghuram Rajan, which is one of the subcommittees of the Financial Stability and Development Council (FSDC) that there was no immediate cause of worry for India from global economic developments and financial volatility, though it has urged to be vigilant. Meanwhile, investors have started eyeing Index of Industrial Production (IIP) data for the month of July scheduled to be released later today. Some caution also prevailed ahead of the next week’s US Federal Reserve meet on interest rate hike. On the global front, the dollar held onto most of this week's gains against the yen on Friday in the face of a business survey that leaned against strengthening on expectation of another round of quantitative easing by the Bank of Japan.
Finally, the rupee ended at 66.53, 10 paise weaker from its previous close of 66.43 on Thursday. The currency touched a high and low of 66.57 and 66.32 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 66.38 and for Euro stood at 74.89 on September 11, 2015. While, the RBI’s reference rate for the Yen stood at 55.00, the reference rate for the Great Britain Pound (GBP) stood at 102.5939. The reference rates are based on 12 noon rates of a few select banks in Mumbai.
