Indian rupee extended its weakness on Friday for the third consecutive day amid persistent foreign capital outflows. Sentiments remained down-beat with the report indicating that India's economy lost momentum in the final three months of 2016 after Prime Minister Narendra Modi's ban on high-value notes hurt consumption and businesses. Having posted growth of above 7% for six consecutive quarters, India's gross domestic product is expected to have expanded just 6.5% in the October-December quarter - the weakest in nearly three years. Traders remained cautious ahead of inauguration speech of Donald Trump as US president later in the day. Besides, the heavy losses in domestic equity markets along also weighed on the sentiment of the local currency. However, dollar weakness against other currencies overseas after Fed Chair Janet Yellen indicated the central bank would take a wait-and-see approach to monetary policy, suggesting any rate hikes this year could be slow, supported the rupee.
Finally, the rupee ended at 68.18, 6 paise weaker from its previous close of 68.12 on Thursday. The currency touched a high and low of 68.23 and 68.03 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 68.08 and for Euro stood at 72.73 on January 20, 2017. While the RBI’s reference rate for the Yen stood at 59.38, the reference rate for the Great Britain Pound (GBP) stood at 84.12.The reference rates are based on 12 noon rates of a few select banks in Mumbai.
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