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 amid foreign fund outflows. Sentiments remained dampened as foreign brokerage reported that investment continued to slip to 27.5 percent of GDP, from 29.2 percent in June 2016, with high lending rates dampening demand and sustaining excess capacity. Besides, massive losses of domestic equity markets too affected the rupee, but a weak dollar overseas kept the fall to a minimum. On the global front, dollar fell against Japanese yen on Monday as concerns about geopolitical risks following North Korea's latest nuclear test over the weekend prompted a rush to traditional currency hedges.
Finally, the rupee ended at 64.05, 2 paise weaker from its previous close of 64.03 on Friday. The currency touched a high and low of 64.18 and 63.93 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 64.04 and for Euro stood at 76.15 on September 04, 2017. While the RBI’s reference rate for the Yen stood at 58.51, the reference rate for the Great Britain Pound (GBP) stood at 82.96. The reference rates are based on 12 noon rates of a few select banks in Mumbai.
