Indian rupee extended its weakness on Tuesday for the third consecutive day amid persistent foreign capital outflows. Traders remained cautious over concern of India’s demonetisation move estimated to pull down gross domestic product growth this financial year from last year’s 7.6 per cent. The domestic rating agency, ICRA has forecasted a 40 bps dip in growth rate to 7.2 per cent in the second quarter of the current fiscal, citing debilitating impact of the demonetisation drive on the economy. On the global front, dollar dipped but was holding near almost 14-year highs against a basket of currencies on Tuesday as traders took profits following the greenback’s longest rally in more than four years.
Finally, the rupee ended at 68.25, 9 paise weaker from its previous close of 68.16 on Monday. The currency touched a high and low of 68.26 and 68.09 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 68.23 and for Euro stood at 72.43 on November 22, 2016. While the RBI’s reference rate for the Yen stood at 61.46, the reference rate for the Great Britain Pound (GBP) stood at 85.16.The reference rates are based on 12 noon rates of a few select banks in Mumbai.
