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Rupee ends weaker along with equities

20 Dec 2017 Evaluate

Indian rupee depreciated against the US dollar on Wednesday, hurt by fresh demand for the American currency from importers. Sentiments remained down-beat with Federation of Indian Chambers of Commerce and Industry’s (FICCI’s) latest quarterly survey indicating that manufacturing sector outlook is slightly less optimistic in third quarter of the current fiscal year (Q3), pointing to factors like rupee appreciation, subdued demands along with issues related to GST regime. Some cautiousness also crept in ahead of the release of the minutes from the Reserve Bank of India’s policy meeting earlier this month in which the policy rate was kept unchanged. Besides, poor performance of the domestic equity market, too affected the rupee. On the global front, dollar rose against yen on Wednesday, after the US Senate passed a tax reform bill which would slash income taxes for corporates and individuals while widening US budget deficit and income inequality.

Finally, the rupee ended at 64.11, 8 paise weaker from its previous close of 64.03 on Tuesday. The currency touched a high and low of 64.13 and 64.00 respectively. The Reserve Bank of India's (RBI) reference rate for the dollar stood at 64.05 and for Euro stood at 75.82 on December 20, 2017. While the RBI's reference rate for the Yen stood at 56.70, the reference rate for the Great Britain Pound (GBP) stood at 85.76. The reference rates are based on 12 noon rates of a few select banks in Mumbai.

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