Indian rupee ended weaker against the US dollar on Monday due to increased demand of the greenback from the importers and the banks. Sentiments remained dampened with Reserve Bank of India's report that credit growth plunged to a whopping six-decade low of 5.08% in the financial year 2016-17, as against 10.7% a year ago. Some cautiousness also prevailed among investors with the private report that India's current account deficit (CAD) is expected to widen to 1.6% of GDP this year from 0.5% in 2016, owing to higher commodity prices and an expected strong domestic recovery. However, losses remained capped with the report that Inflation based on the wholesale price index slipped to 5.70% in March due to easing fuel prices and cost decline of manufactured goods even as food prices hardened. Besides, dollar's weakness against other currencies overseas too restricted the rupee's losses. On the global front, Yen was trading at 5-month high against US Dollar as rising geopolitical tensions helped to keep safe havens in demand.
Finally, the rupee ended at 64.52, 11 paise weaker from its previous close of 64.41 on Thursday. The currency touched a high and low of 64.52 and 64.28 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 64.40 and for Euro stood at 68.40 on April 17, 2017. While the RBI’s reference rate for the Yen stood at 59.39, the reference rate for the Great Britain Pound (GBP) stood at 80.71. The reference rates are based on 12 noon rates of a few select banks in Mumbai.
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