Indian rupee depreciated against the US dollar on Monday, due to fresh demand for the American currency from banks and importers. Investors’ maintained cautious approach ahead of key macro data - index of industrial production (IIP) for April and consumer price index-based inflation for May scheduled to be released later today. Sentiments also remained dampened, as the State Bank of India has expressed concern that demonetisation, announced in November 2016, may continue to result in slowing down of the economy, and adversely affect its business. It said that the long-term impact of this move on the Indian economy and the banking sector is uncertain. Besides, dollar strengthen against other currencies overseas along with losses in the domestic equity market too weighted on the rupee sentiments. On the global front, dollar climbed against British pound on Monday, with investors questioning what’s next for the U.K. government as it wrangles with a hung parliament just before Brexit talks are scheduled to begin.
Finally, the rupee ended at 64.44, 19 paise weaker from its previous close of 64.25 on Friday. The currency touched a high and low of 64.46 and 64.31 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 64.34 and for Euro stood at 72.13 on June 12, 2017. While the RBI’s reference rate for the Yen stood at 58.36, the reference rate for the Great Britain Pound (GBP) stood at 82.08. The reference rates are based on 12 noon rates of a few select banks in Mumbai.
