Indian rupee concluded substantially weaker against dollar on account of continued dollar demand from importers and banks. Dollar strengthens against some global currencies also weighed on the rupee sentiment. Investors failed to drew any comfort with a private survey showing India’s services sector expanded at the fastest pace in the three months ended July, backed by a strong inflow of business amid strong underlying demand conditions. The Nikkei India Services Business Activity Index, which tracks changes in activity at service companies on a monthly basis, increased to 51.9 in July, up from 50.3 in June. Besides, losses in the local equity market combined with investors’ cautiousness ahead of decision on the Goods and Services Tax (GST) Bill also dampened sentiments. On the global front, dollar edged higher against the other major currencies on Wednesday, but remained within close distance of a five-week trough as declining expectations for a U.S. rate hike in 2016 continued to weigh.
Finally the rupee ended at 66.99, weaker by 26 paise from its previous close of 66.73 on Tuesday. The currency touched a high and low of 67.01 and 66.71 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 66.94 and for Euro stood at 74.99 on August 3, 2016. While, the RBI’s reference rate for the Yen stood at 66.26, the reference rate for the Great Britain Pound (GBP) stood at 89.01. The reference rates are based on 12 noon rates of a few select banks in Mumbai.
