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

07 Dec 2017 Evaluate

Indian rupee weakened against the US dollar on Thursday due to higher demand for the American currency from importers and banks amid sustained foreign fund outflows. Further, there was concern with Reserve Bank of India’s (RBI) monetary policy committee keeping the key interest rate unchanged on Wednesday, noting risks to inflation, though it expressed optimism that the slowdown in economic growth had bottomed out. RBI also maintained its neutral policy stance, which essentially means future calls on rate direction would be data-driven and in either direction. On the global front, the dollar edged up against peers on Thursday, shaking off earlier losses versus the yen, supported by signs that investors’ risk appetites were improving again and by optimism on US tax reforms.

The partially convertible currency is currently trading at 64.55, weaker by 4 paise from its previous close of 64.51 on Wednesday. The currency touched a high and low of 64.5750 and 64.4950 respectively. The Reserve Bank of India's (RBI) reference rate for the dollar stood at 64.44 and for Euro stood at 76.27 on December 06, 2017. While the RBI's reference rate for the Yen stood at 57.42, the reference rate for the Great Britain Pound (GBP) stood at 86.49. The reference rates are based on 12 noon rates of a few select banks in Mumbai.

Date1US$1GBP
December 06, 201764.446786.4939
December 05, 201764.376486.6378

(RBI-Reference Rate)

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