Indian rupee pared some of its early losses but still ended marginally weaker against the American currency on Monday, due to fresh dollar demand from banks and importers. Traders maintained cautious approach ahead of the US Federal Reserve’s two-day policy meeting that is schedule to begin tomorrow. However, dollar weakness against other currencies overseas and firm domestic equity market limited the rupee’s fall. Meanwhile, investors took note of India Meteorological Department’s (IMD) statement that the cumulative rainfall received till Sunday across the country was 103% of the benchmark long period average (LPA). Both the north-west and central parts of the country have received ‘excess’ rainfall with 116% and 113% of LPA, respectively. In case of the southern peninsula, rainfall has been 91% of LPA, while in the east and the north-east region, rainfall has been 90% of LPA. On the global front, the dollar fell to a 13-month low against a trade-weighted basket of currencies on Monday, weighed down by softening US Treasury yields and weak data that is undermining the case for a further rise in interest rates this year.
Finally, the rupee ended at 64.34, 3 paise weaker from its previous close of 64.31 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 64.44 and for Euro stood at 75.12 on July 24, 2017. While the RBI’s reference rate for the Yen stood at 58.01, the reference rate for the Great Britain Pound (GBP) stood at 83.81. The reference rates are based on 12 noon rates of a few select banks in Mumbai.
