Indian rupee depreciated against US dollar on the last trading day of the week, as investors remained cautious ahead of key economic data i.e. December IIP scheduled to be released later in the session. Sentiments remained dampened as Finance Minister Arun Jaitley warned that economies will become more inefficient and GDP will shrink if protectionist trend emerges in developed economies. Rupee was unable to get any support with a US think tank report stating that India will be the world’s fastest growing economy during the next five years as China’s economy cools and growth elsewhere sputters, but internal tensions over inequality and religion will complicate its expansion. Besides, dollar's strength against other currencies overseas too hit the rupee sentiments. On the global front, dollar hit its highest level in 10 days against yen and a basket of currencies ahead of a meeting of the US and Japanese leaders on Friday, putting it on course for its best week since mid-December.
Finally, the rupee ended at 66.88, 3 paise weaker from its previous close of 66.85 on Thursday. The currency touched a high and low of 66.99 and 66.75 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 66.93 and for Euro stood at 71.33 on February 10, 2017. While the RBI’s reference rate for the Yen stood at 58.89, the reference rate for the Great Britain Pound (GBP) stood at 83.77.The reference rates are based on 12 noon rates of a few select banks in Mumbai.
