Caught in a downward spiral for the second straight session, Indian rupee ended considerably weaker against the US dollar on Tuesday, on increased selling of the US currency by exporters and banks. Besides, the fall in the rupee was also triggered by dollar’s appreciation overseas against a basket of major currencies along with extremely bearish local equity markets. Traders even overlooked BMI Research’s latest report that the ongoing economic reforms and improvements to the business environment will continue to support India's economic growth over the coming years, and they expect the country to be one of the best performing emerging market economies, with real GDP growth set to average 6.5 percent over the next five fiscal years. On the global front, dollar pushed higher against a basket of the other major currencies on Tuesday as investors continued to monitor the progress of the US tax bill, while the euro fell to the lowest level in three months.
Finally, the rupee ended at 65.03, 35 paise weaker from its previous close of 64.68 on Monday. The currency touched a high and low of 65.07 and 64.61 respectively. The Reserve Bank of India's (RBI) reference rate for the dollar stood at 64.80 and for Euro stood at 75.22 on November 07, 2017. While the RBI's reference rate for the Yen stood at 56.85, the reference rate for the Great Britain Pound (GBP) stood at 85.33. The reference rates are based on 12 noon rates of a few select banks in Mumbai.
