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Rupee ends substantially weak against dollar; slips below 66 level mark

09 Nov 2015 Evaluate

Indian rupee extending it weakness for the third straight day depreciated substantially against dollar on strong demand for American currency from banks and importers, amid sharp surge in dollar globally on data showing a stronger-than-expected rise in US non-farm payrolls in October. Besides, sell-off in the equity market also hit the rupee sentiment. The Indian rupee slumped to over 1-month low. This is the lowest level of the rupee since September 16 when it had hit 66.51. The sentiments were on pessimistic note after yesterday’s humiliating defeat of the BJP-led led NDA in the Bihar assembly election made the markets worried about increased political opposition for key reforms such as the Goods and Services Tax (GST). On the global front, dollar edged away from a 6-1/2-month high against the euro, as investors took profits on the greenback's surge after bumper U.S. jobs data bolstered bets on the U.S. Federal Reserve raising interest rates in December.

Finally, the rupee ended at 66.44, 68 paise weaker from its previous close of 65.76 on Friday. The currency touched a high and low of 66.50 and 66.31 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 66.33 and for Euro stood at 71.44 on November 09, 2015. While, the RBI’s reference rate for the Yen stood at 53.79 the reference rate for the Great Britain Pound (GBP) stood at 100.0308. The reference rates are based on 12 noon rates of a few select banks in Mumbai

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