Snapping its four-day winning streak, Indian rupee ended marginally weaker against dollar on Tuesday, due to demand for greenback by banks and importers. Traders remained on sidelines ahead of the two-day policy review by RBI’s monetary policy committee (MPC) starting today. The street is expecting the MPC to turn dovish and to be open for a 25 bps cut in interest rates on August 2 if rains are normal. Investors shrugged off the report that India has surpassed China to secure the top position among 30 developing countries on ease of doing business. The rupee sentiment was also hit due a weak domestic equity market. On the global front, dollar fell below the 110 level against the yen on Tuesday, hitting a one-and-a-half month low as investor jitters over looming geopolitical risk events underpinned safe haven demand.
Finally, the rupee ended at 64.42, 6 paise weaker from its previous close of 64.36 on Monday. The currency touched a high and low of 64.45 and 64.32 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 64.35 and for Euro stood at 72.51 on June 06, 2017. While the RBI’s reference rate for the Yen stood at 58.71, the reference rate for the Great Britain Pound (GBP) stood at 83.16. The reference rates are based on 12 noon rates of a few select banks in Mumbai.
