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Rupee surrenders early gains; concludes weak on dollar demand

06 Oct 2015 Evaluate

Snapping five-day winning streak, Indian rupee ended weaker against dollar on Tuesday tracking losses in the Asian currencies market. Besides, fresh demand for American currency from importers despite weak dollar also hit the sentiment of the rupee. Sentiments weakened after the seasonally adjusted Nikkei Business Activity Index slowed to 51.3 in September from 51.8 in August, but remained above the 50-mark for the third straight month which separates contraction from expansion. However, gains in domestic stock markets restricted the fall of rupee to some extent. On the global front, the dollar was lower against the other major currencies overseas, disappointed by the U.S. employment data released last week prompted investors to slide back their expectations for a rate hike by the Federal Reserve.

Finally, the rupee ended at 65.41, 12 paise weaker from its previous close of 65.29 on Monday. The currency touched a high and low of 65.44 and 65.25 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 65.39 and for Euro stood at 73.19 on October 6, 2015. While, the RBI’s reference rate for the Yen stood at 54.41 the reference rate for the Great Britain Pound (GBP) stood at 99.0540. The reference rates are based on 12 noon rates of a few select banks in Mumbai.   

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