Indian rupee extending its weakness for second straight day depreciated against dollar on Tuesday on fresh bouts of demand for the American currency from importers and banks, amid volatile domestic equities. Investors turned cautious ahead of the Index of Industrial Production (IIP) data for November and CPI Inflation data scheduled to be released later in the day. Investors overlooked finance minister Arun Jaitley’s statement that India can move to a high-growth trajectory of 10 per cent over the next two years with higher spending on infrastructure and by creating and strengthening banks. On the global front, dollar edged down against yen on Tuesday, drifting towards a 4-month low against the perceived safe-haven yen as crude oil prices continued to tumble.
Finally, the rupee ended at 66.87, 6 paise weaker from its previous close of 66.81 on Monday. The currency touched a high and low of 66.9750 and 66.70 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 66.89 and for Euro stood at 72.74 on January 12, 2016. While, the RBI’s reference rate for the Yen stood at 56.91 the reference rate for the Great Britain Pound (GBP) stood at 97.1518. The reference rates are based on 12 noon rates of a few select banks in Mumbai.
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