Reversing its three-day uptrend, Indian rupee ended weaker against dollar on Wednesday, tracking losses in the other Asian currencies. Sentiments weakened after Nikkei India services Purchasing Managers Index (PMI) which tracks services sector companies on a monthly basis, stood at 52 in September, down from the 43-month high of 54.7 in the previous month of August 2016, pointing to a slower and moderate rate of expansion. Sentiment further dampened with the India Meteorological Department's statement that monsoon into October has led to crop damage in many areas. Also, dollar strengthened against other currencies overseas amid mounting expectations of higher borrowing costs in the US too weighed on the local currency. On the global front, euro extended its gains against dollar following a report of potential changes to European Central Bank policy.
Finally, the rupee ended at 66.51, 5 paise weaker from its previous close of 66.46 on Tuesday. The currency touched a high and low of 66.62 and 66.50 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 66.56 and for Euro stood at 74.65 on October 5, 2016. While the RBI’s reference rate for the Yen stood at 64.70, the reference rate for the Great Britain Pound (GBP) stood at 84.47.The reference rates are based on 12 noon rates of a few select banks in Mumbai.
