Indian rupee ended weaker against the US dollar on Wednesday due to increased demand of the greenback from the importers and the banks. The domestic currency remained weak since opening tracking the fall in global equity markets. Sentiments remained dampened with the private report that India's GDP growth is expected to slow to 6.7% in the January-March quarter of this fiscal year as overall activity is yet to bounce back to levels seen prior to demonetisation. According to the report, a pick-up in headline CPI inflation, better global conditions (exports) and narrowing interest rate differentials (with the US) have lowered the probability of a rate cut and increased the probability of a hike. On the global front, dollar hit a four-month low against safe-haven yen on Wednesday as a risk-off mood grew in markets rethinking the ‘Trumpflation trade’ that had pushed the greenback to a 14-year peak and stocks to record highs.
Finally, the rupee ended at 65.44, 16 paise weaker from its previous close of 65.28 on Tuesday. The currency touched a high and low of 65.57 and 65.37 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 65.48 and for Euro stood at 70.72 on March 22, 2017. While the RBI’s reference rate for the Yen stood at 58.70, the reference rate for the Great Britain Pound (GBP) stood at 81.68.The reference rates are based on 12 noon rates of a few select banks in Mumbai.
