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

11 Feb 2016 Evaluate

Indian rupee weakened against dollar in early deals on Thursday due to increased demand for the American unit from importers and banks amid a lower opening in the domestic equity market. Moreover, sustained capital outflows also weighed on the domestic unit but the dollar’s weakness against some currencies overseas limited the rupee’s fall. On the global front, the dollar hit a 15-month low against the yen on Thursday after comments from Federal Reserve Chair Janet Yellen gave investors no reason to change their minds that the next rate hike will be a long time coming.

The partially convertible currency is currently trading at 68.06, weaker by 21 paise from its previous close of 67.85 on Wednesday. The currency touched a high and low of 68.07 and 67.90 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 67.87 and for Euro stood at 76.64 on February 10, 2016. While the RBI’s reference rate for the Yen stood at 59.21, the reference rate for the Great Britain Pound (GBP) stood at 98.2943. The reference rates are based on 12 noon rates of a few select banks in Mumbai.

Date1US$1GBP
February 10, 201667.878198.2943
February 09, 201668.162398.2696

(RBI-Reference Rate)

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