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Rupee extends weakness for third straight session

22 Jun 2017 Evaluate

Indian rupee extended its weakness for the third consecutive day on Thursday, due to continued capital outflows amid growing demand for dollar from importers. Sentiment remained subdued with ratings agency ICRA’s report that funding of crop loan waivers would likely worsen the fiscal deficit and leverage levels of state governments. According to the report, there is a significant risk that productive capital spending may end up being used to fund a portion of the loan waivers, impacting the growth of overall investment activity in the country. However, the losses were contained because of a weak dollar against key global currencies. On the global front, dollar eased versus yen on Thursday as a recent rally tied to bets on another US interest rate hike this year lost steam.

Finally, the rupee ended at 64.59, 7 paise weaker from its previous close of 64.52 on Wednesday. The currency touched a high and low of 64.59 and 64.45 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 64.49 and for Euro stood at 72.07 on June 22, 2017. While the RBI’s reference rate for the Yen stood at 58.05, the reference rate for the Great Britain Pound (GBP) stood at 81.79. The reference rates are based on 12 noon rates of a few select banks in Mumbai.

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