Indian rupee depreciated against the US dollar on Tuesday, due to month-end dollar demand from importers and banks. Sentiments remained subdued with NITI Aayog’s report highlighting that there is a huge gap between what the state governments have done to improve ease of doing business and what the enterprises know of these improvements. Besides, massive losses of domestic equity markets too impacted the rupee, but a weak dollar overseas kept the fall to a minimum. On the global front, dollar slumped to a four-month low against yen on Tuesday after North Korea fired a missile that passed over northern Japan, the latest act of provocation by Pyongyang that has ramped up tensions in the region over the past month.
Finally, the rupee ended at 64.02, 11 paise weaker from its previous close of 63.91 on Monday. The currency touched a high and low of 64.03 and 63.92 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 64.01 and for Euro stood at 76.75 on August 29, 2017. While the RBI’s reference rate for the Yen stood at 58.81, the reference rate for the Great Britain Pound (GBP) stood at 82.88. The reference rates are based on 12 noon rates of a few select banks in Mumbai.
