Indian rupee weakened against US dollar on Friday due to concerns over widening fiscal deficit. The Centre on Thursday introduced a long-term capital gains tax of 10% on stock market gains exceeding Rs 1 lakh, resulting in volatility in forex market. Besides, increased demand for the American currency from importers, a lower opening of the domestic equity market also kept pressure on the rupee. Sentiment turned negative further after the government's revised estimate showed that the net borrowing for the current fiscal was raised steeply to Rs 4.79 lakh crore as against the estimate of Rs 3.5 lakh crore. On the global front, the dollar nursed losses against a basket of currencies on Friday and was on track for a weekly fall as investors focused on renewed economic strength in the eurozone.
The partially convertible currency is currently trading at 64.12, weaker by 10 paise from its previous close of 64.02 on Thursday. The currency touched a high and low of 64.1950 and 64.0650 respectively. The Reserve Bank of India's (RBI) reference rate for the dollar stood at 63.61 and for Euro stood at 78.94 on February 1, 2018. While the RBI's reference rate for the Yen stood at 58.09, the reference rate for the Great Britain Pound (GBP) stood at 90.17. The reference rates are based on 12 noon rates of a few select banks in Mumbai.
| Date | 1US$ | 1GBP |
| February 01, 2018 | 63.6113 | 90.1754 |
| January 31, 2018 | 63.6878 | 90.3539 |
(RBI-Reference Rate)
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