Indian rupee pared all of its gains and ended marginally weaker against dollar on Wednesday, due to fresh demand for the American currency from banks and importers. Investors were worried after Reserve Bank of India (RBI) kept repo rate unchanged at 6% and Reverse Repo rate was also maintained at 5.75%. Besides, the dollar’s gains against some other currencies overseas coupled with lackluster trade in the equity markets also weighed on the rupee sentiments. However, losses were limited as some support came with domestic brokerage report which highlighted that there will be minimal impact on inflation from the government’s decision to fix support prices for the upcoming Kharif crops like paddy at least 50% higher than the cost of production. On the global front, dollar lost half a percent against yen on Wednesday, handing back earlier gains, as investors remained cautious after a heavy selloff in stock markets, and with many viewing the Japanese currency as undervalued.
Finally, the rupee ended at 64.28, 3 paise weaker from its previous close of 64.25 on Tuesday. The currency touched a high and low of 64.30 and 64.03 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 64.13 and for Euro stood at 79.43 on February 07, 2018. While the RBI's reference rate for the Yen stood at 58.71, the reference rate for the Great Britain Pound (GBP) stood at 89.49. The reference rates are based on 12 noon rates of a few select banks in Mumbai.
