Piling on yesterday’s loss, Indian rupee weakened further against the American currency on Wednesday, following bouts of month-end dollar demand from banks and importers. Traders remained cautious with a private report stating that weak macroeconomic indicators like current account deficit and inflation have exposed India to adverse global macro developments such as US monetary policy trajectory and trade war risks. Investors even ignored the commerce ministry’s statement that India and China have agreed to draw-up a medium and long term roadmap with action points and timelines in order to increase bilateral trade in a balanced and sustainable manner. Besides, extremely bullish dollar sentiment overseas coupled with sluggish equity markets also adversely impacted local unit. On the global front, dollar pushed higher against a basket of the other major currencies on Wednesday as trade tensions remained elevated following reports that China will soon announce a list of retaliatory tariffs on US imports.
Finally, the rupee ended at 65.18, 22 paise weaker from its previous close of 64.96 on Tuesday. The currency touched a high and low of 65.29 and 64.88 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 65.04 and for Euro stood at 80.62 on March 28, 2018. While the RBI’s reference rate for the Yen stood at 61.54, the reference rate for the Great Britain Pound (GBP) stood at 92.28. The reference rates are based on 12 noon rates of a few select banks in Mumbai.
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