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Rupee weakens on sustained demand for American currency from importers and bankers

13 Jun 2016 Evaluate

Indian rupee weakened against the US dollar in early deals on Monday and breached 67-mark due to sustained demand for the American currency from importers and bankers amid a lower opening in the domestic equity market, followed by weak domestic output data released on Friday and cautiousness over the CPI data scheduled later in the day. Reports showed that industrial output contracted by 0.8% in April, the first decline in three months, due to drastic fall in capital goods production and manufacturing activities. Furthermore, concerns over Fed policy meet beginning Tuesday and referendum on Brexit next week, too weighed heavy on the domestic currency. On the global front, the British pound fell to an eight-week low against the dollar on Monday ahead of a referendum that could pull Britain out of the European Union. The yen gained broadly on those Brexit concerns and worries over political fallout from the rise of presidential candidate Donald Trump.

The partially convertible currency is currently trading at 67.06, weaker by 31 paise from its previous close of 66.75 on Friday. The currency touched a high and low of 67.0675 and 66.98 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 66.79 and for Euro stood at 75.47 on June 10, 2016. While the RBI’s reference rate for the Yen stood at 62.40, the reference rate for the Great Britain Pound (GBP) stood at 96.5719. The reference rates are based on 12 noon rates of a few select banks in Mumbai.

Date1US$1GBP
June 10, 201666.794896.5719
June 09, 201666.625096.7195
(RBI-Reference Rate)

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