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Rupee depreciates substantially past psychological 68/$ level

21 Jan 2016 Evaluate

Indian rupee extending its weakness for second straight day depreciated against dollar on Thursday on heavy bouts of demand for the American currency from the banks and importers. Besides, a massive fall in the local equity market and higher dollar overseas also hit the rupee sentiment. Investors overlooked the Finance Minister Arun Jaitley’s statement that India is gradually transforming most of its taxation laws for a greater degree of stability and predictability.  On the global front, dollar was higher against the major rivals breaking off from one-year low against the yen on Thursday as crude oil prices bounced.

Finally, the rupee ended at 68.03, 7 paise weaker from its previous close of 67.96 on Wednesday. The currency touched a high and low of 68.10 and 67.82 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 68.06 and for Euro stood at 74.16 on January 21, 2016. While the RBI’s reference rate for the Yen stood at 58.30, the reference rate for the Great Britain Pound (GBP) stood at 96.5567. The reference rates are based on 12 noon rates of a few select banks in Mumbai.    

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