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Rupee weakens on increased demand for American unit from importers and banks

03 Feb 2016 Evaluate

Indian rupee weakened against dollar in early deals on Wednesday due to increased demand for the American unit from importers and banks amid a lower opening in the domestic equity market. Meanwhile, the Reserve Bank of India left interest rates unchanged on Tuesday, with governor Raghuram Rajan saying the central bank’s next move will be based on the government’s budget as well as inflation. However, the dollar’s weakness against some currencies overseas limited the rupee’s fall. On the global front, the yen and euro held on to overnight gains against the dollar on Wednesday after a sharp slide in crude oil prices fuelled risk aversion, driving down US debt yields to 9-month lows and dulling the greenback's appeal.

The partially convertible currency is currently trading at 68.22, weaker by 24 paise from its previous close of 67.98 on Tuesday. The currency touched a high and low of 68.26 and 68.17 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 67.83 and for Euro stood at 73.93 on February 02, 2016. While the RBI’s reference rate for the Yen stood at 56.21, the reference rate for the Great Britain Pound (GBP) stood at 97.6131. The reference rates are based on 12 noon rates of a few select banks in Mumbai.   

Date1US$1GBP
February 02, 201667.834097.6131
February 01, 201667.672896.5149

(RBI-Reference Rate)

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