Indian rupee ended marginally lower against US dollar on Thursday, due to fresh demand for the American currency from banks and importers. Traders remained concerned with Assocham’s statement that President Donald Trump’s announcement of the US pulling out from the Iran deal and his decision to re-impose sanctions on the key crude oil producer will exert pressure on fuel prices and affect the Indian economy on the downside. Besides, the weak trade in the local equity market also hit the rupee sentiment. However, losses were limited as some support came with India Ratings’ report that the Indian economy is gradually coming out of the twin shock of demonetisation and GST which temporarily derailed growth. The ratings agency, however, cautioned on the possible widening of the current account deficit due to rising oil prices which was creating pressure on the currency. On the global front, dollar slid lower against a currency basket on Thursday, as investors took a breather after this week’s rally to four-and-a-half month highs as interest rate differentials continued to drive strength in the US currency.
Finally, the rupee ended at 67.31, 4 paise weaker from its previous close of 67.27 on Wednesday. The currency touched a high and low of 67.43 and 67.23 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 67.37 and for Euro stood at 79.89 on May 10, 2018. While the RBI’s reference rate for the Yen stood at 61.34, the reference rate for the Great Britain Pound (GBP) stood at 91.38. The reference rates are based on 12 noon rates of a few select banks in Mumbai.
