Indian rupee extending weakness for the second day declined against dollar on Tuesday on increased demand for the American currency from banks and importers, tracking losses in its Asian peers. Besides, strength in the US dollar against other currencies overseas amid speculation over a Fed rate hike and reversal of key technical supports also hit the rupee sentiment. Moreover, the domestic currency even failed to get solace from the gains in the local equity markets. On the global front, yen fell against the dollar on Tuesday after the warnings by Japan that it was prepared to step in to weaken the currency.
Finally, the rupee ended at 66.67, 9 paise weaker from its previous close at 66.58 on Monday. The currency touched a high and low of 66.74 and 66.60 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 66.72 and for Euro stood at 75.95 on May 10, 2016. While the RBI’s reference rate for the Yen stood at 61.35, the reference rate for the Great Britain Pound (GBP) stood at 96.1069. The reference rates are based on 12 noon rates of a few select banks in Mumbai.
