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Rupee weakens on appreciation of American currency overseas

08 May 2018 Evaluate

Indian rupee weakened against the US dollar on Tuesday due to appreciation of the American currency overseas amid sustained foreign capital outflows. Further, increased demand for the US currency from importers too weighed on domestic currency. However, a higher opening in the domestic equity market capped the losses. On the global front, the dollar hovered near a four-month high on Tuesday, continuing to draw support from higher Treasury yields and upbeat prospects for the US economy, leaving its major rivals such as the euro struggling and others including the Argentine peso down sharply.

The partially convertible currency is currently trading at 67.20, weaker by 7 paise from its previous close of 67.13 on Monday. The currency touched a high and low of 67.2850 and 67.1400 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 67.10 and for Euro stood at 80.11on May 07, 2018. While the RBI’s reference rate for the Yen stood at 61.44, the reference rate for the Great Britain Pound (GBP) stood at 90.84. The reference rates are based on 12 noon rates of a few select banks in Mumbai.

Date1US$1GBP
May 07, 201867.106090.8481
May 04, 201866.768190.5843

(RBI-Reference Rate)

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