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Rupee weakens on increased demand for American currency from banks and importers

11 Jan 2018 Evaluate

Indian rupee weakened against the US dollar on Thursday on account of increased demand for the American currency from banks and importers, amid foreign fund outflows. Further, crude oil prices were ruling at around three-year high levels, putting pressure on the rupee as India is a major oil importer. Traders are cautious ahead of the Index of Industrial Production (IIP) data for November and Consumer Price Inflation (CPI) for December due to be released on 12 January. However, the dollar's weakness against other currencies overseas, capped some losses. On the global front, the dollar nursed its losses against the yen on Thursday, having suffered its biggest one-day drop in nearly eight months following a report that China was ready to slow or halts its purchases of US Treasuries.

The partially convertible currency is currently trading at 63.74, weaker by 14 paise from its previous close of 63.60 on Wednesday. The currency touched a high and low of 63.8225 and 63.6600 respectively. The Reserve Bank of India's (RBI) reference rate for the dollar stood at 63.82 and for Euro stood at 76.13 on January 10, 2018. While the RBI's reference rate for the Yen stood at 56.81, the reference rate for the Great Britain Pound (GBP) stood at 86.28. The reference rates are based on 12 noon rates of a few select banks in Mumbai.

Date1US$1GBP
January 10, 201863.826486.2805
January 09, 201863.469086.1528

(RBI-Reference Rate)

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