Extending losses for the third day in a row, Indian rupee ended weaker against the US dollar on Thursday, due to increased demand of the greenback from the importers and the banks. Investors remained cautious after Fitch Ratings in its latest report raised concerns over the recent spate of declarations of farm loan waivers across the country, adding that these moves could have a significant impact on state government finances and might undermine efforts to bring down general government debt. The rating agency noted that the farm loan waivers will also lead to further fiscal slippage at the state level or will reduce the funds available for public investment. However, positive gains in equity market as well as dollar weakness against other currencies overseas arrested some of the rupee’s fall. On the global front, euro its highest level in almost 14-months against dollar on Thursday, as investors shrugged off efforts by the European Central Bank to moderate the message in a speech given by President Mario Draghi earlier this week.
Finally, the rupee ended at 64.62, 7 paise weaker from its previous close of 64.55 on Wednesday. The currency touched a high and low of 64.64 and 64.44 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 64.47 and for Euro stood at 73.52 on June 29, 2017. While the RBI’s reference rate for the Yen stood at 57.40, the reference rate for the Great Britain Pound (GBP) stood at 83.56. The reference rates are based on 12 noon rates of a few select banks in Mumbai.
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