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Rupee weakens against dollar in early deals on Thursday

07 Jan 2016 Evaluate

Indian rupee weakened against dollar in early deals on Thursday after the Chinese central bank, People's Bank of China (PBOC), set the yuan midpoint to its weakest level since March 2011, sending Asian currencies tumbling. PBOC set the yuan reference rate at 6.5646 against the dollar, down 0.51 percent from Wednesday's fix. The yuan’s depreciation dragged Chinese equities down and trading had to be suspended. Further, lower opening in domestic equities and sustained foreign fund outflows amid increase demand for the US currency from importers also weighed on the rupee. However, the dollar was weak against major global currencies, capping the rupee losses. On the global front, the yen hit multi-month highs against its peers on Thursday while commodity-linked currencies took a fresh hit after China guided the yuan lower for two days in a row, fuelling anxiety about China's economy and its policy intentions.

The partially convertible currency is currently trading at 66.91, weaker by 8 paise from its previous close of 66.83 on Wednesday. The currency touched a high and low of 66.9425 and 66.80 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 66.71 and for Euro stood at 71.70 on January 06, 2016. While, the RBI’s reference rate for the Yen stood at 56.19 the reference rate for the Great Britain Pound (GBP) stood at 97.7730. The reference rates are based on 12 noon rates of a few select banks in Mumbai.

Date1US$1GBP
January 06, 201666.716597.7730
January 05, 201666.541897.9562

(RBI-Reference Rate)

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