Extending losses for the fourth straight session, Indian rupee ended at 9-month low as against the US dollar on Wednesday. Sentiments remained dampened with the report that government has assessed the impact of demonetisation that is likely to bring the gross domestic product (GDP) growth to 5.5% in the third quarter of financial year 2016-17, a steep drop from 7.1 per cent in the first quarter. Gains in the local equity market even failed to arrest the rupee’s fall. The dollar strengthened against basket of overseas currencies on hopes that the US President-elect Donald Trump’s proposed fiscal expansion may boost inflation, prompting the Fed to raise rates more aggressively than previously expected.
Finally, the rupee ended at 68.56, 31 paise weaker from its previous close of 68.25 on Tuesday. The currency touched a high and low of 68.58 and 68.36 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 68.47 and for Euro stood at 72.78 on November 23, 2016. While the RBI’s reference rate for the Yen stood at 61.71, the reference rate for the Great Britain Pound (GBP) stood at 84.96.The reference rates are based on 12 noon rates of a few select banks in Mumbai.
