Indian rupee breaching 65-mark ended considerably weaker against dollar on Monday, on increased demand for the American currency from importers and banks amid foreign fund outflows. Traders were cautious with Chief Economic Adviser Arvind Subramanian’s statement that Indian economy continues to face multiple challenges and stressed on the need to tackle them on various fronts, such as exchange rate, public investments while maintaining macroeconomic stability. Besides, strength in the US dollar against some other currencies overseas along with massive losses in domestic equity markets, largely kept domestic unit under pressure. On the global front, Sterling rebounded on Monday, having slid on Friday after a speech by Prime Minister Theresa May failed to offer the kind of detail investors had been looking for to remove political uncertainty that has kept the currency under pressure.
Finally, the rupee ended at 65.11, 32 paise weaker from its previous close of 64.79 on Friday. The currency touched a high and low of 65.20 and 64.72 respectively. The Reserve Bank of India's (RBI) reference rate for the dollar stood at 64.83 and for Euro stood at 77.30 on September 25, 2017. While the RBI's reference rate for the Yen stood at 57.75, the reference rate for the Great Britain Pound (GBP) stood at 87.93. The reference rates are based on 12 noon rates of a few select banks in Mumbai.
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