Extending losses for a sixth straight session, Indian rupee ended considerably weaker against the dollar on Monday, due to heavy foreign capital outflows. Since start of April, foreign institutional investors (FIIs) have sold nearly a combined $1.4 billion in equity and debt market on the worries of an increase in crude oil prices, which may lead to higher inflation and fiscal slippage. Besides, continued demand for the American currency from importers coupled with the greenback’s strength against other currencies overseas, bolstered by rising US bond yields, weighed on rupee sentiments. Traders remained cautious with PHD Chamber’s report that roadblocks such as delay in GST refunds and after effects of note ban hit India’s export prospects in 2017-18 amid a revival in global demand mainly in key markets of the US and the EU. On the global front, the pound fell to a five-week low against the dollar on Monday, continuing the downward momentum seen last week off the back of worse than expected economic data.
Finally, the rupee ended at 66.48, 36 paise weaker from its previous close of 66.12 on Friday. The currency touched a high and low of 66.10 and 65.98 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 66.21 and for Euro stood at 81.26 on April 23, 2018. While the RBI’s reference rate for the Yen stood at 61.40, the reference rate for the Great Britain Pound (GBP) stood at 92.84. The reference rates are based on 12 noon rates of a few select banks in Mumbai.
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