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Rupee weakens on increased demand for American currency from banks, importers

25 Oct 2017 Evaluate

Indian rupee weakened against the US dollar on Wednesday on account of increased demand for the American currency from banks and importers. Further, dollar’s strength against some other currencies overseas and unabated foreign fund outflows too weighed on domestic currency. Meanwhile, domestic equity markets opened at record high after the Union Cabinet on Tuesday announced various measures to boost economy. On the global front, the dollar held near a three-month high versus the yen on Wednesday, underpinned by reports of Republican senators’ favoring John Taylor to become the next head of the Federal Reserve, while the Aussie dollar weakened after soft inflation data.

The partially convertible currency is currently trading at 65.16, weaker by 10 paise from its previous close of 65.06 on Tuesday. The currency touched a high and low of 65.1950 and 65.0925 respectively. The Reserve Bank of India's (RBI) reference rate for the dollar stood at 64.92 and for Euro stood at 76.33 on October 24, 2017. While the RBI's reference rate for the Yen stood at 57.18, the reference rate for the Great Britain Pound (GBP) stood at 85.79. The reference rates are based on 12 noon rates of a few select banks in Mumbai.

Date1US$1GBP
October 24, 201764.925685.7927
October 23, 201765.023985.8381

(RBI-Reference Rate)

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