Indian rupee, after making a weak start, depreciated substantially against dollar on Thursday on increased demand for the American currency from importers and banks amid foreign fund outflows. Traders remained concerned with the report that India’s retail inflation is expected to have picked up slightly in July after cooling in the previous three months, but likely remained well below the central bank's 4 percent medium-term target. The rupee sentiment was also hit as the dollar recovered from eight-week lows against some currencies overseas and weak trade in the domestic equities market. On the global front, dollar rose against a trade-weighted basket of currencies on Thursday as investors consolidated positions with the low-yielding Swiss franc and Japanese yen supported amid deepending anxiety over tensions between the United States and North Korea.
Finally, the rupee ended at 64.07, 24 paise weaker from its previous close of 63.83 on Wednesday. The currency touched a high and low of 64.10 and 63.80 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 63.94 and for Euro stood at 75.06 on August 10, 2017. While the RBI’s reference rate for the Yen stood at 58.15, the reference rate for the Great Britain Pound (GBP) stood at 83.00. The reference rates are based on 12 noon rates of a few select banks in Mumbai.
