Indian rupee, depreciated substantially during the session to conclude past psychological ‘65/$’ level on Thursday due to strong month end demand for American currency from importers and weakness of other Asian currencies after US Federal Reserve boosted prospects of interest rate hike in December. Additionally, weak trade in the local equities also added to the pessimistic milieu. Investors failed to draw any comfort from Finance Minister Arun Jaitley’s statement who after India jumped 12 positions to rank 130th in the world on ease of doing business said that the improvement in ranking does not fully reflect the reforms initiated and the position will improve further next year. On the global front, the dollar was higher against a basket of major currencies after the U.S. Federal Reserve left the door open for a rate hike in December.
Finally, the rupee ended at 65.30, 38 paise weaker from its previous close of 64.92 on Wednesday. The currency touched a high and low of 65.32 and 65.12 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 65.15 and for Euro stood at 71.24 on October 29, 2015. While, the RBI’s reference rate for the Yen stood at 53.93 the reference rate for the Great Britain Pound (GBP) stood at 99.3626. The reference rates are based on 12 noon rates of a few select banks in Mumbai.
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