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Rupee gives up early gains to end lower on Monday

14 Mar 2016 Evaluate

Indian rupee giving up the early gains ended modestly lower on Monday, as traders turned cautious ahead of the consumer price inflation (CPI) data due later in the day after the WPI inflation came flat. WPI fell for the 16th straight month in February, declining an annual 0.91%, driven down by weakness in crude prices. Earlier, the domestic currency made a positive start, extending its gains for the fourth session amid dollar selling by banks and exporters. Later the gains in the equity markets too supported the rupee, but  as the trade progressed cautiousness crept in and halted the rupee gains. On the global front, dollar made a flat start, witnessing large swings in previous week, as investors were eyeing Japanese and US central bank policy meetings that could provide them with fresh direction.

Finally, the rupee ended at 67.10, 5 paise weaker from its previous close of 67.05 on Friday. The currency touched a high and low of 67.15 and 66.68 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 67.02 and for Euro stood at 74.80 on March 14, 2016. While the RBI’s reference rate for the Yen stood at 58.90, the reference rate for the Great Britain Pound (GBP) stood at 96.3389. The reference rates are based on 12 noon rates of a few select banks in Mumbai.

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