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Rupee ends tad lower against dollar on Friday

16 Mar 2018 Evaluate

Indian rupee ended marginally lower against US dollar on Friday, due to fresh demand for the American currency from banks and importers. Traders remained concerned with data indicating that the overall trade deficit widened to $11979.21 million during the month under review as against $9521.73 million in February 2017. The trade deficit during April- February 2017-18 was $143134.73 million as against $97858.73 million in the same period last year. Besides, heavy losses in domestic equity markets also weighed on the sentiment of the local currency. However, losses were limited as some support came with IMF report which highlighted that India should see its growth picking up this year after two transitory shocks - the demonetization and the GST. On the global front, dollar slipped on Friday amid the latest round of staff cycling in US president Trump’s White House, after Trump sacked H.R. McMaster as his national security adviser on Thursday.

Finally, the rupee ended at 64.94, 1 paise weaker from its previous close of 64.93 on Thursday. The currency touched a high and low of 64.99 and 64.85 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 64.87 and for Euro stood at 79.91 on March 16, 2018. While the RBI’s reference rate for the Yen stood at 61.27, the reference rate for the Great Britain Pound (GBP) stood at 90.48. The reference rates are based on 12 noon rates of a few select banks in Mumbai.

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