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Rupee weakens on increased month-end demand for US currency from importers

28 Dec 2016 Evaluate

Indian rupee weakened against the dollar on Wednesday on account of increased month-end demand for the US currency from importers amid sustained foreign fund outflows. Further, fall in the Asian peers also dampened the domestic currency. However, a weakness in the US dollar against some currencies in the global market and a higher opening of the domestic equity market restricted the fall. On the global front, the dollar inched up against the yen on Wednesday after upbeat US economic data reinforced expectations for economic growth under Donald Trump's Administration and more rate hikes by US Federal Reserve next year.

The partially convertible currency is currently trading at 68.23, weaker by 17 paise from its previous close of 68.06 on Tuesday. The currency touched a high and low of 68.2325 and 68.1050 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 67.99 and for Euro stood at 71.04 on December 27, 2016. While the RBI’s reference rate for the Yen stood at 57.97, the reference rate for the Great Britain Pound (GBP) stood at 83.49.The reference rates are based on 12 noon rates of a few select banks in Mumbai.

Date1US$1GBP
December 27, 2016 67.996783.4999
December 26, 201667.833183.3126
(RBI-Reference Rate)

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