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Rupee extends the decline for the third straight session

01 Jun 2016 Evaluate

Indian rupee continued its weakness for the third straight session on Wednesday, on fresh dollar demand from importers. However, the domestic currency made a positive start in early deals on sustained bouts of dollar selling from banks and exporters, after macro-economic indicators such as GDP numbers and core sector growth showed that the country’s economy has gained momentum. Also, the government was able to keep the fiscal deficit in check. But later the rupee lost its momentum with local equity markets showing some volatile trend. There were some reports that RBI governor Raghuram Rajan doesn’t want an extension of his term and that too weighed on the sentiments. On the global front, the dollar turned lower against the other major currencies, weighed down by last session’s mixed US economic reports.  

Finally, the rupee ended at 67.45, 19 paise weaker from its previous close at 67.26 on Tuesday. The currency touched a high and low of 67.46 and 67.11 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 67.35 and for Euro stood at 74.96 on June 1, 2016. While the RBI’s reference rate for the Yen stood at 61.31, the reference rate for the Great Britain Pound (GBP) stood at 97.5333. The reference rates are based on 12 noon rates of a few select banks in Mumbai.

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