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Rupee depreciates substantially past psychological 65/$ level

13 Oct 2015 Evaluate

Indian rupee extending weakness for the second straight day depreciated against dollar on Tuesday due to increased demand for the American currency from importers and banks. Besides, weak trade in the local equity market also weighed on the domestic currency. The sentiments remained down-beat after India’s retail inflation based on the Consumer Price Index (CPI) for September increased to 4.41%, from 3.74% recorded for the previous month, on the back of higher food prices. On the global front, yen strengthened against its rival currencies on Tuesday, as falling Asian stocks and weak China trade data prompted investors to buy the safety of the Japanese currency.

Finally, the rupee ended at 65.19, 44 paise weaker from its previous close of 64.75 on Monday. The currency touched a high and low of 65.19 and 64.86 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 65.02 and for Euro stood at 73.91 on October 13, 2015. While, the RBI’s reference rate for the Yen stood at 54.26 the reference rate for the Great Britain Pound (GBP) stood at 99.8860. The reference rates are based on 12 noon rates of a few select banks in Mumbai.  

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