Indian rupee ended considerably weaker against the US dollar on Wednesday, on the back of consistent demand for the greenback from state-run banks and importers. Traders shrugged off a report highlighting that RBI projected Consumer Price Index (CPI) based inflation to follow a downward trend and remain in the 4.7%-5.1% band. Having lowered inflation expectations, the RBI has raised its GDP growth projections by 80 bps to 7.4% from 6.6%. Investors even overlooked Asian Development Bank’s report that India is expected to bounce back to 7.3% in fiscal 2018 and firm to 7.6% in 2019 as the new tax regime improves productivity and as banking reform and corporate deleveraging take hold to reverse a downtrend in investment. Besides, dollar weakened against some currencies overseas failed to cast any impact on the rupee. On the global front, US dollar slipped against its most major counterparts on Wednesday, as investors awaited US inflation data and the minutes from the latest Fed meeting for more clues about policy outlook.
Finally, the rupee ended at 65.31, 32 paise weaker from its previous close of 64.99 on Tuesday. The currency touched a high and low of 65.31 and 64.98 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 65.12 and for Euro stood at 80.58 on April 11, 2018. While the RBI’s reference rate for the Yen stood at 60.84, the reference rate for the Great Britain Pound (GBP) stood at 92.51. The reference rates are based on 12 noon rates of a few select banks in Mumbai.
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