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Rupee ends considerably weaker against US dollar

28 Nov 2016 Evaluate

Indian rupee ended considerably weaker against the US dollar on Monday due to month-end demand for the American currency from importers. Sentiments also remained dampened after the Reserve Bank of India (RBI) on Saturday introduced an incremental CRR of 100% for the fortnight to absorb the surge in liquidity in banking system following demonetization of high value notes. The CRR hike will reduce the market liquidity considerably and lowers the chances of any rate cut by the RBI in its upcoming policy review. Besides, weak domestic equity market also weighed on the rupee but the dollar weakened against some currencies overseas capped the fall. On the global front, dollar fell sharply against the yen as renewed uncertainty over the direction of oil production amplified a wave of profit-taking from a post-U.S. election surge.

Finally, the rupee ended at 68.76, 30 paise weaker from its previous close of 68.46 on Friday. The currency touched a high and low of 68.80 and 68.43 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 68.72 and for Euro stood at 73.17 on November 28, 2016. While the RBI’s reference rate for the Yen stood at 61.32, the reference rate for the Great Britain Pound (GBP) stood at 85.84.The reference rates are based on 12 noon rates of a few select banks in Mumbai.  

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