Indian rupee depreciated against dollar on Friday due to demand for the dollar from importers and banks. Besides, dollar strengthened against the other currencies oversees too weighted on the rupee sentiment. Rupee failed to get any support with India Meteorological Department’s (IMD’s) statement that monsoon rains in India were 15 percent above average in the week ended August 10. The weather office has retained its forecast for an above-average monsoon this year, boosting hopes of a rise in farm output and income after two years of drought. On the global front, yen weakened against the dollar in the wake of a rise in U.S. bond yields amid hawkish interest-rate comments from a senior Federal Reserve official.
Finally the rupee ended at 66.89, weaker by 5 paise from its previous close of 66.84 on Thursday. The currency touched a high and low of 66.89 and 66.79 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 66.83 and for Euro stood at 74.46 on August 12, 2016. While, the RBI’s reference rate for the Yen stood at 65.44, the reference rate for the Great Britain Pound (GBP) stood at 86.63. The reference rates are based on 12 noon rates of a few select banks in Mumbai.
