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Rupee weakens as American currency strengthened overseas

21 Sep 2017 Evaluate

Indian rupee weakened against the US dollar as it strengthened overseas. The dollar rose to a two-month high against the yen and extended its gains against the euro on Thursday after a hawkish-sounding Federal Reserve heightened expectations for an interest rate hike in December. After concluding a closely watched two-day policy meeting on Wednesday, the Fed left interest rates unchanged as expected but signaled it still expects one more increase by the end of the year, despite a recent bout of low inflation. The Fed, as expected, also said it would begin in October to reduce its approximately $4.2 trillion in holdings of US Treasury bonds and mortgage-backed securities acquired in the years after the 2008 financial crisis.

The partially convertible currency is currently trading at 64.50, weaker by 23 paise from its previous close of 64.27 on Wednesday. The currency touched a high and low of 64.5500 and 64.4475 respectively. The Reserve Bank of India's (RBI) reference rate for the dollar stood at 64.36 and for Euro stood at 77.24 on September 20, 2017. While the RBI's reference rate for the Yen stood at 57.76, the reference rate for the Great Britain Pound (GBP) stood at 87.02. The reference rates are based on 12 noon rates of a few select banks in Mumbai.

Date1US$1GBP
September 20, 201764.363787.0262
September 19, 201764.176986.8121

(RBI-Reference Rate)

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