Taking the losses further for the second straight day against the US dollar, Indian rupee ended weaker on Tuesday, on continued demand for the American unit coupled with its growing strength overseas. Traders remained concerned with former President Pranab Mukherjee’s statement that the country’s demographic dividend runs the risk of turning into a demographic disaster if employment is not generated. He added that the country has achieved an economic growth of 6-8% in the last couple of decades but the inequality among different classes of the society is still huge and unacceptable. Investors failed to take support with the India Meteorological Department (IMD) forecasting that India will receive normal monsoon for a third consecutive year. On the global front, dollar rebounded on Tuesday, partly boosted by a drop in the pound after a disappointing reading on UK wage growth put the brakes on the recent sterling rally.
Finally, the rupee ended at 65.64, 15 paise weaker from its previous close of 65.49 on Monday. The currency touched a high and low of 65.69 and 65.40 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 65.61 and for Euro stood at 81.32 on April 17, 2018. While the RBI’s reference rate for the Yen stood at 61.35, the reference rate for the Great Britain Pound (GBP) stood at 94.20. The reference rates are based on 12 noon rates of a few select banks in Mumbai.
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