Indian rupee depreciated marginally against dollar on Thursday, due to fresh dollar demand from banks and importers amid foreign fund outflows. Sentiments remained subdued as the RBI cut the economic growth forecast for the current fiscal to 6.7% from its August forecast of 7.3% in view of issues with GST implementation and lower Kharif output estimates. Besides, dollar’s renewed strength against other currencies overseas and weak trade in the local equity market also hit the sentiment of rupee. However, losses were limited as some support came with NITI Aayog CEO Amitabh Kant’s statement that while there has been a 'little bit of dip' in the Indian economy, it is now bouncing back. On the global front, pound took a tumble on Thursday amid a cocktail of bad news including weak car sales data and S&P comments questioning whether the UK economy could handle an interest rate hike.
Finally, the rupee ended at 65.15, 10 paise weaker from its previous close of 65.05 on Wednesday. The currency touched a high and low of 65.19 and 64.97 respectively. The Reserve Bank of India's (RBI) reference rate for the dollar stood at 65.17 and for Euro stood at 76.56 on October 05, 2017. While the RBI's reference rate for the Yen stood at 57.77, the reference rate for the Great Britain Pound (GBP) stood at 86.21. The reference rates are based on 12 noon rates of a few select banks in Mumbai.
