Indian rupee ended weak against dollar on Monday amid persistent demand for the US currency from banks and importers. Besides, weak trade in the equity market and dollar gains against other currencies overseas also weighed on the sentiment. Furthermore, sentiments remained dented with a private report stating that consumer sentiments in India fell for the fourth consecutive month in December to the lowest on record, as consumers reported a further deterioration in their personal finances amid rising inflation. Also, the Commerce and Industry Minister Nirmala Sitharaman has said the devaluation of the Chinese currency is a 'worrying' development which will make Indian exports expensive and widen the trade deficit with the neighbouring nation. On the global front, yen fell from its strongest level since August versus the dollar as demand for safer assets amid the fallout from China’s market turmoil waned.
Finally, the rupee ended at 66.81, 17 paise weaker from its previous close of 66.64 on Friday. The currency touched a high and low of 66.92 and 66.70 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 66.78 and for Euro stood at 72.92 on January11, 2016. While, the RBI’s reference rate for the Yen stood at 56.93 the reference rate for the Great Britain Pound (GBP) stood at 97.0570. The reference rates are based on 12 noon rates of a few select banks in Mumbai.
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