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

10 Apr 2017 Evaluate

Indian rupee weakened against the US dollar on Monday on account of fresh demand for the American currency from banks and importers. Besides, dollar's strength against other currencies overseas also weighed on the rupee, but a higher opening of the domestic equity market capped the losses. On the global front, the dollar started the week at three-week highs against a currency basket on Monday, after a key US Federal Reserve official reinforced the central bank's commitment to interest rate hikes. New York Fed President William Dudley said the Fed might avoid raising interest rates at the same time that it begins shrinking its $4.5 trillion bond portfolio, prompting only a ‘little pause’ in the central bank’s rate hike plans. His comments bolstered US Treasury yields and burnished the dollar's yield allure.

The partially convertible currency is currently trading at 64.46, weaker by 20 paise from its previous close of 64.26 on Friday. The currency touched a high and low of 64.5000 and 64.3100 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 64.39 and for Euro stood at 68.55 on April 07, 2017. While the RBI’s reference rate for the Yen stood at 58.19, the reference rate for the Great Britain Pound (GBP) stood at 80.25. The reference rates are based on 12 noon rates of a few select banks in Mumbai.

Date1US$1GBP
April 07, 201764.392880.2592
April 06, 201764.979181.1524

(RBI-Reference Rate)

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