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Rupee weakens against dollar in early deals on Friday

27 Nov 2015 Evaluate

Indian rupee weakened against dollar in early deals on Friday, in line with its Asian peers, due to persistent risk-off sentiment on the back of broad dollar strength overseas. Besides, increased month-end demand for the American currency from importers too kept pressure on the rupee. Further, traders are cautious ahead of the key Gross Domestic Product (GDP) and fiscal deficit data which will be out on Monday, too weighing on rupee sentiment. The government will issue GDP data for the September quarter. India is likely to clock a GDP growth rate of 7.3% for the September quarter as compared to 7% in the June quarter. The government will also issue fiscal deficit data for October. India’s fiscal deficit was Rs.3.79 trillion during April-September, or 68.1% of the target for FY16. Traders are also cautious ahead of Reserve Bank of India’s (RBI) bi-monthly policy on 1 December where it is likely to keep rates unchanged. However, a higher opening in domestic equity market capped some losses. On the global front, the dollar held near an 8-1/2-month peak on Friday, while the euro hovered around seven-month lows on expectations of additional stimulus from the European Central Bank next week.

The partially convertible currency is currently trading at 66.76, weaker by 19 paise from its previous close of 66.57 on Thursday. The currency touched a high and low of 66.8950 and 66.65 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 66.55 and for Euro stood at 70.69 on November 26, 2015. While, the RBI’s reference rate for the Yen stood at 54.30 the reference rate for the Great Britain Pound (GBP) stood at 100.6446. The reference rates are based on 12 noon rates of a few select banks in Mumbai.

Date 1US$1GBP
November 26, 201566.5507100.6446
November 24, 201566.3840100.4523

(RBI-Reference Rate)

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