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Rupee weakens on increased demand for American currency from importers

21 Oct 2016 Evaluate

Indian rupee weakened against the dollar on Friday on increased demand for the American currency from importers. Besides, the US dollar’s gains against some currencies overseas and a weak domestic equity market also weighed on domestic unit.  Further, fall in Asian currencies also dampened sentiment. On the global front, the dollar stood tall in Asian trading, on track for a weekly gain against a basket of currencies, as the euro wallowed at seven-month lows after the European Central Bank doused speculation that it would taper its stimulus.

The partially convertible currency is currently trading at 66.88, weaker by 7 paise from its previous close of 66.81 on Thursday. The currency touched a high and low of 66.9450 and 66.84 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 66.74 and for Euro stood at 73.14 on October 20, 2016. While the RBI’s reference rate for the Yen stood at 64.35, the reference rate for the Great Britain Pound (GBP) stood at 81.91.The reference rates are based on 12 noon rates of a few select banks in Mumbai.

Date1US$1GBP
October 20, 201666.741181.9114
October 19, 201666.714581.7853
(RBI-Reference Rate)

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