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Rupee slumps to over four month low on increased dollar demand

15 Nov 2016 Evaluate

Indian rupee further weakened to over four-and-a-half month low against the US dollar on Tuesday, after foreign institutional investors (FIIs) continued to sell in the local equity markets. There was continued demand for the American unit from importers and the greenback’s persistent gains against other Asian currencies, weighed on the rupee. The domestic currency touched a low of 67.82, a level last seen over four months back and remained under pressure with local equities slumping again. On the global front, the dollar eased against a basket of the other major currencies on Tuesday, but remained in sight of almost 14-year highs amid expectations for an interest rate increase.

Finally, the rupee ended at 67.75, 50 paise weaker from its previous close of 67.25 on Friday. The currency touched a high and low of 67.82 and 67.53 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 67.71 and for Euro stood at 72.77 on November 15, 2016. While the RBI’s reference rate for the Yen stood at 62.61, the reference rate for the Great Britain Pound (GBP) stood at 84.42.The reference rates are based on 12 noon rates of a few select banks in Mumbai.

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