Indian rupee continued its downtrend for the second-straight day against the US dollar on Tuesday, on sustained bouts of month-end dollar demand from importers and banks. Also, weak domestic equity markets weighed on the rupee. Traders remained worried on private report stating that inflation is expected to trend higher and though RBI may keep policy rates on hold in 2018-19, there are also increasing chances of a rate hike. Investors also remained cautious ahead of domestic economic data including December quarter gross domestic product (GDP) and fiscal deficit, scheduled to be released on Wednesday. On the global front, Pound Sterling moved higher against the US Dollar on Tuesday, as investors sit on the sidelines ahead of testimony from Jerome Powell, the newly appointed chief of the US Federal Reserve Bank.
Finally, the rupee ended at 64.89, 10 paise weaker from its previous close of 64.79 on Monday. The currency touched a high and low of 64.96 and 64.76 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 64.85 and for Euro stood at 79.96 on February 27, 2018. While the RBI’s reference rate for the Yen stood at 60.71, the reference rate for the Great Britain Pound (GBP) stood at 90.58. The reference rates are based on 12 noon rates of a few select banks in Mumbai.
