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Rupee ends weaker along with equities

20 Jul 2017 Evaluate

Indian rupee depreciated against the US dollar on Thursday, hurt by fresh demand for the American currency from importers. Investors failed to get solace with the Asian Development Bank’s (ADB) report which predicted Asia’s economy to expand faster in 2017; South Asia to remain the fastest growing of all sub-regions and India to achieve a 7.4 percent growth due to strong consumption. Besides, the dollar rose to a position of strength overseas along with weak trade in domestic equity market, dragged down the domestic currency. On the global front, US dollar climbed for a second successive day on Thursday after falling to a 10-month low earlier this week as some investors pared bearish bets before a European Central Bank meeting that may signal a policy shift later this year.

Finally, the rupee ended at 64.43, 15 paise weaker from its previous close of 64.28 on Wednesday. The currency touched a high and low of 64.47 and 64.32 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 64.42 and for Euro stood at 74.18 on July 20, 2017. While the RBI’s reference rate for the Yen stood at 57.45, the reference rate for the Great Britain Pound (GBP) stood at 83.91. The reference rates are based on 12 noon rates of a few select banks in Mumbai.

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