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Rupee ends tad lower against dollar on Tuesday

26 Dec 2017 Evaluate

Indian rupee ended marginally lower against US dollar on Tuesday, due to fresh demand for the American currency from banks and importers. Trading sentiments remained subdued with report that foreign investors have pulled out Rs 7,300 crore from the country’s stock markets this month so far, primarily due to rising crude prices and widening fiscal deficit. However, the home unit managed to restrict fall, taking support from industry body ASSOCHAM's Year-Ahead Outlook report stating that Indian economy is likely to touch 7% growth in 2018 with the government policies tilting towards the country's stress-ridden rural landscape in the penultimate year before the 2019 general elections. Besides, last hour recovery in local equity markets, too aided the rupee to minimize its losses. On the global front, dollar was steady in holiday-thinned trading on Tuesday, shrugging off upbeat Japanese economic data as most market participants have already closed their books for the year.

Finally, the rupee ended at 64.08, 4 paise weaker from its previous close of 64.04 on Friday. The currency touched a high and low of 64.11 and 64.02 respectively. The Reserve Bank of India's (RBI) reference rate for the dollar stood at 64.05 and for Euro stood at 76.02 on December 26, 2017. While the RBI's reference rate for the Yen stood at 56.53, the reference rate for the Great Britain Pound (GBP) stood at 85.67. The reference rates are based on 12 noon rates of a few select banks in Mumbai.

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