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Rupee snaps 6 days gaining streak; ends weaker against dollar

15 Jul 2016 Evaluate

Snapping its six day gaining streak, Indian rupee ended weaker against dollar on Friday with fresh dollar demand by banks and importers. The domestic currency erased its initial gains to end weaker amid losses in local equity market. Besides, dollar gains against other currencies overseas too hit the rupee sentiment. Investors failed to get support with hopes for smooth passage of much-awaited GST bill in the coming monsoon session of the parliament, after Congress leadership accepted the NDA government's invitation for further negotiations and discussion on alternative proposals on capping of the rate. On the global front, the yen hit a three-week low against the dollar on Friday and was set for its biggest weekly fall in 17 years after data pointed to stabilization in the Chinese economy, bolstering global risk sentiment.

Finally, the rupee ended 67.06, 15 paise weaker from its previous close at 66.91 on Thursday. The currency touched a high and low of 67.13 and 66.85 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 67.06 and for Euro stood at 74.60 on July 15, 2016. While the RBI’s reference rate for the Yen stood at 63.38, the reference rate for the Great Britain Pound (GBP) stood at 89.9281. The reference rates are based on 12 noon rates of a few select banks in Mumbai.

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