Indian rupee ended considerably weaker against the US dollar on Monday due to dollar demand from banks and importers. Sentiments remained down-beat with the report that Core sector growth slowed to a 15-month low in February, led by a drop in cement output. Growth, as measured by the index of eight core industries, eased to 1 percent in February from 3.4 percent in January and 9.4 per cent a year earlier. Further, traders remained cautious ahead of the Reserve Bank of India’s (RBI) bi-monthly two-day policy meeting on April 5-6. The RBI is likely to hold rates and retain its neutral stance in the policy. Local currency was unable to get any support with the report that activity in the country's manufacturing sector expanded at the fastest pace in five months in March 2017 as output and new orders accelerated. The Nikkei Manufacturing Purchasing Managers' Index rose to 52.5 in March, from 50.7 in February. On the global front, dollar edged up on Monday as investors shrugged off a lack of motives to buy it last week and awaited more clarity on the strength of the US economy and pace of future interest rate hikes.
Finally, the rupee ended at 65.02, 17 paise weaker from its previous close of 64.85 on Friday. The currency touched a high and low of 65.08 and 64.76 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 64.91 and for Euro stood at 69.27 on April 03, 2017. While the RBI’s reference rate for the Yen stood at 58.23, the reference rate for the Great Britain Pound (GBP) stood at 81.43.The reference rates are based on 12 noon rates of a few select banks in Mumbai.
