Indian rupee ended one-week low against US dollar on Monday, tracking the losses in the local equity markets. Rupee sentiments were pessimistic after the advance estimates of Gross Domestic Product (GDP) data for fiscal year 2017, indicated a slowdown in growth even though the figures do not take into account the demonetisation impact. GDP growth is estimated to slow down to 7.1% in the current fiscal, from 7.6% in 2015-16, mainly due to slump in manufacturing, mining and construction sectors. Besides, sustained capital outflows and dollar strengthen against a basket of some currencies also weighed on the local unit. On the global front, dollar pushed higher against a basket of the other major currencies on Monday as the U.S. jobs report for December supported the case for rate hikes.The employment data indicated that the economy is on a strong enough footing for the Federal Reserve to keep pushing up interest rates.
Finally, the rupee ended at 68.20, 24 paise weaker from its previous close of 67.96 on Friday. The currency touched a high and low of 68.25 and 68.14 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 68.18 and for Euro stood at 71.82 on January 9, 2017. While the RBI’s reference rate for the Yen stood at 58.10, the reference rate for the Great Britain Pound (GBP) stood at 83.12.The reference rates are based on 12 noon rates of a few select banks in Mumbai.
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