Extending losses for the third session, Indian rupee ended weaker against dollar on Thursday due to sustained demand for the US currency from importers and banks amid strengthening of American currency overseas. Besides, weakness in domestic equity market kept pressure on the rupee. Investors remained cautious expecting that the RBI might leave its key interest rate steady at 6.75 percent next week, given that the US Fed maintained its status quo on key lending rates. Investors overlooked the statement of S Iswaran, Minister of Trade and Industry, Singapore, that India is projected to be the world's fastest growing major economy this year. On the global front, dollar was almost unchanged against the yen on Thursday, with many investors unwilling to make major moves ahead of a closely-watched policy decision by the Bank of Japan due Friday.
Finally, the rupee ended at 68.22, 17 paise weaker from its previous close of 68.05 on Wednesday. The currency touched a high and low of 68.25 and 68.01 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 68.08 and for Euro stood at 74.06 on January 28, 2016. While the RBI’s reference rate for the Yen stood at 57.36, the reference rate for the Great Britain Pound (GBP) stood at 97.0155. The reference rates are based on 12 noon rates of a few select banks in Mumbai.
