Indian rupee continued its downtrend for the third-straight day against the US dollar on Friday, due to strong demand for the American currency from importers amid foreign fund outflows. Investors remained concerned with report that the Reserve Bank of India (RBI) has halved its dividend payout to the government to Rs 30,659 crore for the fiscal ended June 2017. Last fiscal, the RBI had transferred Rs 65,876 crore surplus as dividend to the government. This would potentially impact the government’s fiscal math this financial year, which is under pressure due to state-run banks’ sluggish earnings growth. Besides, heavy losses in domestic equity markets also weighed on the sentiment of the local currency. On the global front, dollar skidded to an eight-week low against yen on Friday as escalating tensions between the United States and North Korea triggered yet more investor flight to safety.
Finally, the rupee ended at 64.14, 7 paise weaker from its previous close of 64.07 on Thursday. The currency touched a high and low of 64.27 and 64.11 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 64.16 and for Euro stood at 75.45 on August 11, 2017. While the RBI’s reference rate for the Yen stood at 58.76, the reference rate for the Great Britain Pound (GBP) stood at 83.26. The reference rates are based on 12 noon rates of a few select banks in Mumbai.
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