Indian rupee pared most of its early losses but still ended marginally weaker against the American currency on Thursday, due to fresh dollar demand from banks and importers. Sentiments remained down-beat with rating agency Care Ratings’ latest report that uptrend in crude oil price is likely to have a major impact on India's fiscal position. It further noted that higher prices of crude oil will increase the trade deficit and put pressure on the rupee. Investors remained cautious ahead of key economic data i.e. November IIP and December CPI data, scheduled to be released tomorrow. Moreover, the domestic currency was also weighed down by dollar's strengthen against some other currencies overseas. On the global front, dollar edged higher against yen on Thursday, after comments by China’s foreign exchange regulator eased concerns that China may reduce its buying of US government bonds.
Finally, the rupee ended at 63.66, 6 paise weaker from its previous close of 63.60 on Wednesday. The currency touched a high and low of 63.82 and 63.64 respectively. The Reserve Bank of India's (RBI) reference rate for the dollar stood at 63.73 and for Euro stood at 76.13 on January 11, 2018. While the RBI's reference rate for the Yen stood at 57.03, the reference rate for the Great Britain Pound (GBP) stood at 86.01. The reference rates are based on 12 noon rates of a few select banks in Mumbai.
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