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Rupee weakens on increased demand for American currency from importers and banks

13 Oct 2016 Evaluate

Indian rupee weakened against the US dollar on Thursday on account of  increased demand for the American currency from importers and banks. Sentiments remained down-beat after Industrial production data contracted once again for the month of August. IIP dipped 0.7 percent in August due to a slump in manufacturing and mining, in the manufacturing space, capital goods brought about the maximum fall. Traders also remained on sidelines ahead of monthly inflation data based on consumer price index (CPI) for September due later in the day and wholesale price index (WPI) due on Friday. On the global front, yen gained against the dollar after disappointing Chinese trade data helped bring an uptick in the dollar to an abrupt end.

The partially convertible currency is currently trading at 66.85, weaker by 32 paise from its previous close of 66.53 on Monday. The currency touched a high and low of 66.86 and 66.76 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 66.59 and for Euro stood at 74.40 on October 10, 2016. While the RBI’s reference rate for the Yen stood at 64.56, the reference rate for the Great Britain Pound (GBP) stood at 82.48.The reference rates are based on 12 noon rates of a few select banks in Mumbai.

Date

1US$1GBP
October 10, 2016 66.585682.4796
October 07, 201666.787583.2373
(RBI-Reference Rate)

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