Snapping its two-days gaining streak, Indian rupee depreciated against dollar on Friday due to demand for American currency from banks and importers and sustained capital outflows. Besides, appreciation in the American currency overseas, with the Fed meeting coming within a week and US monetary policy expected to be tightened too weighed on rupee sentiments. Meanwhile investors remained cautious ahead of the IIP data to be released later in the day. Investors were unable to get any respite with a UN report stating that India's economy is projected to grow by 7.3 percent next year and will continue to be the fastest growing economy in the world in 2016 and 2017, amid a volatile global financial condition. On the global front, euro was a touch higher against the dollar after pulling back from a rise above $1.10 earlier this week.
Finally, the rupee ended at 66.89, 17 paise weaker against its previous close of 66.72 on Thursday. The currency touched a high and low of 66.91 and 66.73 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 66.78 and for Euro stood at 73.10 on December 11, 2015. While, the RBI’s reference rate for the Yen stood at 54.75 the reference rate for the Great Britain Pound (GBP) stood at 101.1006. The reference rates are based on 12 noon rates of a few select banks in Mumbai.
