Reversing a straight three-session uptrend, Indian rupee ended significantly weaker against the Greenback on Tuesday, following fresh demand for the US currency from banks and importers to meet the month end dollar demand. Sentiments weakened with a private report stating that the June policy review meeting is likely to be a close call, while the tone of the policy statement is expected to remain hawkish. Investors paid no heed towards the India Meteorological Department (IMD) stating that the southwest monsoon hit Kerala today, three days before its scheduled arrival. The onset of monsoon over the southern state marks the commencement of the four-month long rainy season in the country. The IMD has made a forecast of normal rainfall this season. Besides, selling in second half of the trade in the domestic equity markets, added some extra pressure on the rupee. On the global front, pound fell to a six-month low against a rallying dollar today, while it held its own against a euro dragged down by concerns about a deepening political crisis in Italy.
Finally, the rupee ended at 67.88, 46 paise weaker from its previous close of 67.42 on Monday. The currency touched a high and low of 68.00 and 67.65 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 67.82 and for Euro stood at 78.69 on May 29, 2018. While, the RBI’s reference rate for the Yen stood at 62.27, the reference rate for the Great Britain Pound (GBP) stood at 90.16. The reference rates are based on 12 noon rates of a few select banks in Mumbai.
