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Rupee ends modestly weak on Monday

18 Sep 2017 Evaluate

Indian rupee ended marginally weaker against the American currency on Monday on increased demand for the US currency from importers amid foreign fund outflows. Sentiments remained down-beat with report that trade deficit in the month of August widened to $11.64 billion from $7.7 billion during the same month a year ago. India’s exports rose 10.29% on a yearly basis to $23.81 billion in August on account of rise in shipments of engineering, petroleum, chemicals and pharmaceuticals products. Imports too increased 21.02% to $35.46 billion in August from $29.30 billion in the year-ago month due to rise in inward shipments of crude oil and gold. Besides, strength in the US dollar against some other currencies overseas too weighed on the rupee sentiment. Though, firm domestic equity market restricted the fall of rupee to some extent. On the global front, dollar hit an eight-week high against yen on Monday, supported by a rise in US Treasury yields, as traders eyed a Federal Reserve meeting starting the next day for clues on whether interest rates could rise again by year-end. 

Finally, the rupee ended at 64.13, 5 paise weaker from its previous close of 64.08 on Friday. The currency touched a high and low of 64.13 and 63.99 respectively. The Reserve Bank of India's (RBI) reference rate for the dollar stood at 64.03 and for Euro stood at 76.49 on September 18, 2017. While the RBI's reference rate for the Yen stood at 57.57, the reference rate for the Great Britain Pound (GBP) stood at 87.08. The reference rates are based on 12 noon rates of a few select banks in Mumbai.

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