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Rupee weakens on fresh demand for American currency from importers, banks

15 Mar 2018 Evaluate

Indian rupee weakened against the US dollar on Thursday due to fresh demand for the American currency from importers and banks. Also, foreign capital outflows and weak equity markets weighed on the domestic unit. Meanwhile, traders are awaiting trade deficit data for February due later in the day. However, the dollar’s weakness against select global currencies, limited the rupee’s fall. On the global front, the dollar fell against the yen on Thursday and pulled further away from a recent two-week high as lingering worries about global trade tensions weighed on investors’ risk appetite. Market participants remain concerned about increased protectionism under US President Donald Trump’s administration, with US equities having fallen on Wednesday after Trump sought to impose fresh tariffs on China.

The partially convertible currency is currently trading at 64.94, weaker by 11 paise from its previous close of 64.83 on Wednesday. The currency touched a high and low of 64.9825 and 64.9100 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 64.98 and for Euro stood at 80.58 on March 14, 2018. While the RBI’s reference rate for the Yen stood at 60.99, the reference rate for the Great Britain Pound (GBP) stood at 90.82. The reference rates are based on 12 noon rates of a few select banks in Mumbai.

Date 1US$1GBP
March 14, 201864.987590.8265
March 13, 201864.956790.2314

(RBI-Reference Rate)

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