Indian rupee erasing its early gains depreciated against dollar on Monday as investors remained cautious ahead of RBI monetary policy review on Tuesday. The RBI is widely expected to keep policy rates unchanged at the bi-monthly review. Besides, dollar demand from banks and importers and weak trade in local equity market too put pressure on the currency. Sentiments remained down-beat with Standard & Poor's Ratings Services’ statement that India will face challenges in sticking to the fiscal consolidation roadmap as the expected revenues may not be fully realised and subsidy cuts may be delayed. On the global front, dollar was firmer against yen on Monday, supported by the Bank of Japan’s surprise decision Friday to cut interest rates below zero, while traders were waiting to see a series of key U.S. economic data this week.
Finally, the rupee ended at 67.84, 5 paise weaker from its previous close of 67.79 on Friday. The currency touched a high and low of 67.87 and 67.62 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 67.67 and for Euro stood at 73.41 on February 01, 2016. While the RBI’s reference rate for the Yen stood at 55.78, the reference rate for the Great Britain Pound (GBP) stood at 96.5149. The reference rates are based on 12 noon rates of a few select banks in Mumbai.
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