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Rupee weakens as American currency strengthened overseas

25 Jul 2016 Evaluate

Indian rupee weakened against the US dollar in early deals on Monday as the American currency strengthened overseas. Besides, fresh demand for the US currency from importers and a lower opening in the domestic equity market put pressure on the rupee. Traders are also cautious as the Constitution amendment bill to amend goods and services tax (GST) is likely to be listed this week, after finance minister Arun Jaitley meets state finance ministers on Tuesday. Furthermore, rupee fell tracking weak cues from other Asian currency markets. Most Asian currencies, including the Malaysian ringgit, the Korean won, the Thai Baht and the Chinese yuan were trading lower this morning as cautiousness prevailed ahead of the two-day US Federal Reserve policy review starting Tuesday. On the global front, the dollar was buoyant against the yen and euro on Monday as the risk-on mood inspired by solid U.S. economic data and fading fallout from Brexit continued to lift the U.S. currency and assets.

The partially convertible currency is currently trading at 67.23, weaker by 16 paise from its previous close of 67.07 on Friday. The currency touched a high and low of 67.2450 and 67.1725 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 67.14 and for Euro stood at 74.03 on July 22, 2016. While the RBI’s reference rate for the Yen stood at 63.41, the reference rate for the Great Britain Pound (GBP) stood at 88.95.The reference rates are based on 12 noon rates of a few select banks in Mumbai.

Date1US$1GBP
July 22, 201667.135588.9478
July 21, 201667.203588.9774
(RBI-Reference Rate)

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