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Rupee extends weakness for second straight session

06 Oct 2017 Evaluate

Piling on previous session’s losses, Indian rupee weakened further against the American currency on Friday on heavy dollar demand from corporates and importers. This is the second consecutive session when the rupee is traded lower against dollar. Investors failed to get solace with Commerce and Industry Minister Suresh Prabhu's statement that he is working closely with the finance ministry and other departments to firm up policy initiatives along with fiscal incentives to give a fillip to industrial growth and job creation. Besides, dollar’s gain against other currencies overseas put pressure on the rupee, but good going in the domestic equity market prevented the rupee from falling further. On the global front, dollar edged higher on Friday and is on track for its fourth consecutive week of gains as investors continued to cut their short bets against the greenback on a growing view that bond markets have underpriced the extent of US rate increases.

Finally, the rupee ended at 65.37, 22 paise weaker from its previous close of 65.15 on Thursday. The currency touched a high and low of 65.39 and 65.20 respectively. The Reserve Bank of India's (RBI) reference rate for the dollar stood at 65.22 and for Euro stood at 76.26 on October 06, 2017. While the RBI's reference rate for the Yen stood at 57.72, the reference rate for the Great Britain Pound (GBP) stood at 85.31. The reference rates are based on 12 noon rates of a few select banks in Mumbai. 

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