Indian rupee depreciated over 2-year low against dollar on Monday on strong demand for the American unit from importers and some banks amid risk aversion in emerging market assets on concerns that the Federal Reserve will raise interest rates in the US. Further, gains in the local equity market also didn’t support the rupee. Investors remained cautious ahead of the consumer price index (CPI) inflation data to be released later in the day. Meanwhile, the country’s wholesale inflation which has been in negative territory for thirteen months now, eased a bit with the wholesale price index coming in at - 1.99 percent in November compared to -3.81 percent in October. On the global front, dollar inched up against a basket of major rivals on Monday, as investors focused on the prospect that this week will bring the first rise in U.S. interest rates in almost a decade.
Finally, the rupee ended at 67.10, 21 paise weaker against its previous close of 66.89 on Friday. The currency touched a high and low of 67.12 and 66.95 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 66.99 and for Euro stood at 73.46 on December 14, 2015. While, the RBI’s reference rate for the Yen stood at 55.29 the reference rate for the Great Britain Pound (GBP) stood at 101.7840. The reference rates are based on 12 noon rates of a few select banks in Mumbai.
