Indian rupee ended lower against US dollar on Tuesday, on sustained bouts of dollar demand from importers and banks amid sell-off in local equities. Sentiments remained down-beat with the private report stating that GDP growth will slip down to 7 percent in the second half of the next fiscal, however the economy will grow 7.5 percent level in the first half on a lower base. Some cautions also prevailed in the markets ahead of outcome of the Reserve Bank of India’s (RBI) policy review meeting. Investors are expecting that the central bank will tighten its monetary policy stance in the wake of growing concerns over fiscal slippage. On the global front, US dollar dropped against yen on Tuesday due to a global equities rout triggered by a rise in US Treasury yields overnight causing a record point decline in the Dow Jones Industrial Average.
Finally, the rupee ended at 64.25, 19 paise weaker from its previous close of 64.06 on Monday. The currency touched a high and low of 64.40 and 64.05 respectively. The Reserve Bank of India's (RBI) reference rate for the dollar stood at 64.27 and for Euro stood at 79.52 on February 06, 2018. While the RBI's reference rate for the Yen stood at 59.05, the reference rate for the Great Britain Pound (GBP) stood at 89.71. The reference rates are based on 12 noon rates of a few select banks in Mumbai.
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