Indian rupee depreciated for the second consecutive session against the US dollar on Thursday due to fresh demand for the American currency from banks and importers. Sentiments remained dampened as global rating agency, Standard & Poor (S&P) retained India's sovereign rating at ‘BBB-’ with stable outlook and ruled out any upgrade in two years, citing weak public finances. S&P maintained the lowest investment grade rating saying it wants to see more efforts to lower government debt to below 60 percent of GDP and that it did not expect revenues to rise enough to meaningfully lower the deficit over the medium term. Losses in equity market and uncertainties about the outcome of the US elections next week also weighed on the rupee sentiments. On the global front, sterling jumped against dollar on Thursday after a UK court ruled that the government must seek parliamentary approval to begin the formal process of leaving the European Union.
Finally, the rupee ended at 66.74, 2 paise weaker from its previous close of 66.72 on Wednesday. The currency touched a high and low of 66.76 and 66.66 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 66.69 and for Euro stood at 74.15 on November 03, 2016. While the RBI’s reference rate for the Yen stood at 64.95, the reference rate for the Great Britain Pound (GBP) stood at 82.24.The reference rates are based on 12 noon rates of a few select banks in Mumbai.
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