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Rupee extends its losing streak for fourth straight session

14 Jun 2016 Evaluate

Indian rupee ended weaker on Tuesday, extending its losing streak for the fourth straight session against dollar amid cautiousness ahead of the Fed policy outcome later in the day. Besides, sustained demand for the American currency from importers and banks and weak trade in local equity market too dampened the rupee sentiment. On the economic front, India’s Consumer Price Index (CPI) for May 2016 rose to 5.76%, compared with 5.39% in April and Wholesale Price Index (WPI) for May increased to 0.79% compared to 0.34% in the previous month, weakening prospects of a rate hike by RBI in August 2016. On the global front, yen gained moderately against the dollar and other currency peers on Tuesday, given the highly uncertain outcome for the U.K. referendum next week.

Finally, the rupee ended at 67.27, 13 paise weaker from its previous close at 67.14 on Monday. The currency touched a high and low of 67.30 and 67.11 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 67.15 and for Euro stood at 75.75 on June 14, 2016. While the RBI’s reference rate for the Yen stood at 63.46, the reference rate for the Great Britain Pound (GBP) stood at 95.1007. The reference rates are based on 12 noon rates of a few select banks in Mumbai.

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