Falling for the third-straight session, Indian rupee ended weaker against the US dollar on Tuesday, due to increased demand of the greenback from the importers and the banks. Sentiments remained down-beat with the domestic rating agency Crisil lowering its growth forecast to 7 percent for fiscal 2018, down from 7.4 percent earlier, as it sees disruptions arising from the implementation of the new uniform tax regime to continue to impact the economy for a few more quarters. Sentiment was also hampered after activity in India’s dominant services sector contracted for a second straight month in August on disruptions caused by GST hurt new orders. August’s Nikkei/IHS Markit Services Purchasing Managers’ Index rose to 47.5, from July’s 45.9 but still below the 50 mark that separates expansion from contraction. However, dollar weakened overseas along with gains in the local equity markets, limited the further slide of the currency. On the global front, dollar slipped against Japanese yen on Tuesday as global tensions simmered amid signs that North Korea could conduct more missile tests.
Finally, the rupee ended at 64.13, 7 paise weaker from its previous close of 64.05 on Monday. The currency touched a high and low of 64.18 and 64.08 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 64.11 and for Euro stood at 76.29 on September 05, 2017. While the RBI’s reference rate for the Yen stood at 58.63, the reference rate for the Great Britain Pound (GBP) stood at 82.81. The reference rates are based on 12 noon rates of a few select banks in Mumbai.
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