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Rupee weakens on increased demand for American currency from banks and importers

16 Jan 2017 Evaluate

Indian rupee weakened against the US dollar on Monday on account of increased demand for the American currency from banks and importers. Besides, dollar’s strength against some other currencies overseas and a lower opening of the domestic equity market also weighed on rupee sentiment. The rupee weakened further tracking losses in the Asian currencies markets. On the domestic front, India's trade deficit narrowed to $10.37 bn in December from provisional $13 bn a month ago. Merchandise exports grew 5.72% year-on-year to $23.88 bn last month, while imports rose 0.46% year-on-year to $34.25 bn. On the global front, Sterling dived to three-month lows in thin Asian trade on reports that the British government is prepared to make a ‘hard’ exit from the European Union rekindled investors' fears about the impact of the impending move.

The partially convertible currency is currently trading at 68.17, weaker by 2 paise from its previous close of 68.15 on Friday. The currency touched a high and low of 68.2675 and 68.1575 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 68.23 and for Euro stood at 72.47 on January 13, 2017. While the RBI’s reference rate for the Yen stood at 59.40, the reference rate for the Great Britain Pound (GBP) stood at 82.97.The reference rates are based on 12 noon rates of a few select banks in Mumbai.

Date1US$1GBP
January 13, 201768.231082.9757
January 12, 201768.085883.1940
  (RBI-Reference Rate)

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