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Rupee ends considerably weaker against US dollar

22 Feb 2018 Evaluate

Indian rupee ended considerably weaker against the US dollar on Thursday, on the back of consistent demand for the greenback from state-run banks and importers. Sentiments remained down-beat on report that the country’s investment climate during April-December period of this fiscal looks subdued with declining figures in announcements of new projects and the number of projects under execution. The value of investment in new projects during April-December was Rs 4.43 trillion, less than half of Rs 9.21 trillion in the comparable period of last fiscal. The rupee sentiment was also hit with a report indicating that minutes from the Reserve Bank of India’s meeting this month showed monetary policy committee members expressing concerns about accelerating inflation, although that was also tempered by uncertainty about the strength of an economic recovery. Besides, the dollar rose against major world currencies after US Federal Reserve minutes hinted at hiking interest rates faster than expectations, also impacted the rupee sentiment.

Finally, the rupee ended at 65.03, 26 paise weaker from its previous close of 64.77 on Wednesday. The currency touched a high and low of 65.10 and 64.95 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 65.04 and for Euro stood at 79.83 on February 22, 2018. While the RBI’s reference rate for the Yen stood at 60.55, the reference rate for the Great Britain Pound (GBP) stood at 90.41. The reference rates are based on 12 noon rates of a few select banks in Mumbai.

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