Indian rupee pared some of its early losses but still ended marginally weaker against the American currency on Tuesday, due to fresh dollar demand from banks and importers. Traders remained cautious ahead of key economic data that is October IIP and November CPI, scheduled to be released later in the day. Investors even overlooked the UN DESA's World Economic Situation and Prospects 2018 report, which said that despite a slowdown observed in early 2017, the outlook for India remains positive, underpinned by strong private consumption, robust public investments and structural reforms. Besides, massive losses in domestic equity markets too weighed on the rupee, but dollar’s reduced clout against other currencies overseas helped to cap the losses. On the global front, dollar declined against most major currencies as the US Federal Reserve geared up for a two-day policy meeting at which it is widely expected to raise interest rates for the fifth time since late 2015.
Finally, the rupee ended at 64.40, 4 paise weaker from its previous close of 64.36 on Monday. The currency touched a high and low of 64.52 and 64.39 respectively. The Reserve Bank of India's (RBI) reference rate for the dollar stood at 64.48 and for Euro stood at 75.92 on December 12, 2017. While the RBI's reference rate for the Yen stood at 56.84, the reference rate for the Great Britain Pound (GBP) stood at 86.04. The reference rates are based on 12 noon rates of a few select banks in Mumbai.
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