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Rupee snaps gaining streak; ends weaker on Thursday

25 Feb 2016 Evaluate

Snapping its two-day gaining streak Indian rupee depreciated against dollar on Thursday due to month end demand for American currency from banks and importers. Besides, losses in local equity market also hit the rupee sentiment. Further, investors remained worried over the government's fiscal consolidation plan. Sentiments remained down beat with the announcement of  21 per cent hike in capital spending for the Railway Budget from a year ago and on talk about a meeting between the finance ministry and analysts and media this week-end. On the global front, dollar was flat, as investors were looking to Federal Reserve speakers later in the day for fresh direction on the U.S. rates outlook.

Finally, the rupee ended at 68.72, 16 paise weaker from its previous close of 68.56 on Wednesday. The currency touched a high and low of 68.77 and 68.50 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 68.59 and for Euro stood at 75.67 on February 25, 2016. While the RBI’s reference rate for the Yen stood at 61.01, the reference rate for the Great Britain Pound (GBP) stood at 95.5721. The reference rates are based on 12 noon rates of a few select banks in Mumbai. 

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