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Rupee ends weaker on dollar demand

02 May 2016 Evaluate

Indian rupee ended weaker against dollar on Monday on increased demand for the American currency from importers and banks, amid mixed cues from Asian currency market. Besides, losses in local equities and firm dollar against some currencies overseas also added to the pessimistic environment. The currency after making a weak start lost substantial ground and depreciated amidst lack of positive triggers. Sentiment was hit by a report that exports of 17 sectors, over half of the 30 sectors including petroleum products, textiles, man-made yarn and fabrics, engineering and leather, closely monitored by the Commerce Ministry were in the negative zone in March due to a fall in global commodity prices amid tepid demand. On the global front, euro was higher against the dollar as manufacturing in the currency bloc expanded at a faster pace than initially estimated in April, adding to signs that an economic recovery might be taking hold.

Finally, the rupee ended at 66.44, 11 paise weaker from its previous close of 66.33, on Friday. The currency touched a high and low of 66.45 and 66.31 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 66.34 and for Euro stood at 76.05 on May 02, 2016. While the RBI’s reference rate for the Yen stood at 62.31, the reference rate for the Great Britain Pound (GBP) stood at 97.0207. The reference rates are based on 12 noon rates of a few select banks in Mumbai.  

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