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Rupee weakens on fresh buying of American currency by importers

09 Aug 2016 Evaluate

Indian rupee weakened against the dollar in morning trade on Tuesday on fresh buying of the American currency by importers ahead of the Reserve Bank of India’s (RBI) bi-monthly policy review meet slated later in the day. Outgoing RBI governor Raghuram Rajan will likely choose to leave policy rates unchanged on Tuesday, leaving it to his successor to decide on future rate cuts. Further, strength in the dollar against some other currencies overseas and a weak trend in the domestic equity market in early trade also weighed on the rupee. On the global front, Sterling skidded in Asia on Tuesday on speculation of further UK policy easing, while the dollar held its ground amid growing confidence that the US Federal Reserve could raise interest rates later this year.

The partially convertible currency is currently trading at 66.90, weaker by 6 paise from its previous close of 66.84 on Monday. The currency touched a high and low of 66.9450 and 66.83 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 66.74 and for Euro stood at 74.06 on August 8, 2016. While, the RBI’s reference rate for the Yen stood at 65.40, the reference rate for the Great Britain Pound (GBP) stood at 87.28. The reference rates are based on 12 noon rates of a few select banks in Mumbai.

Date1US$1GBP
August 08, 2016 66.7407 87.2768
August 05, 201666.814187.7470
(RBI-Reference Rate)

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