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Rupee ends marginally weak on dollar demand from importers

02 Nov 2017 Evaluate

Snapping its three-day gaining streak, Indian rupee ended marginally weaker against the American currency on Thursday, due to fresh dollar demand from banks and importers amid foreign fund outflows. Sentiments were down despite the private report stating that India’s Current Account Deficit (CAD) for this financial year is expected to be around $40 billion, or 1.5% of GDP. CAD rose sharply to $14.3 billion, 2.4% of GDP, at the end of first quarter of 2017-18. Besides, some losses in the domestic equity market too affected the rupee, but dollar’s weakness against some currencies overseas kept the fall to a minimum. On the global front, dollar fell on Thursday, giving up some of its gains this week, as investors took profits after the US Federal Reserve left interest rates unchanged on Wednesday, as expected, with markets widely expecting a rate hike at its next meeting.

Finally, the rupee ended at 64.61, 2 paise weaker from its previous close of 64.59 on Wednesday. The currency touched a high and low of 64.67 and 64.47 respectively. The Reserve Bank of India's (RBI) reference rate for the dollar stood at 64.59 and for Euro stood at 75.28 on November 02, 2017. While the RBI's reference rate for the Yen stood at 56.72, the reference rate for the Great Britain Pound (GBP) stood at 85.78. The reference rates are based on 12 noon rates of a few select banks in Mumbai.

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