Indian rupee ended marginally lower against US dollar on Tuesday, amid caution ahead of the Reserve Bank of India’s bi-monthly policy outcome. Sentiments also remain dampened with private report that global economic growth could slow down by 1 percentage point - or more than a quarter of the expansion rates projected by various international bodies - if US President Donald Trump’s tariff threats against China and others escalate into a full-blown trade war. Besides, sluggish equity markets also weighed on the sentiment of the local currency. However, losses were limited as traders took some support with International Monetary Fund highlighting that India, the $2.85 trillion economy is currently the 7th largest in the world in terms of Gross Domestic Product, and all it needs is to add $90 billion to conquer not only the United Kingdom but also France. On the global front, Pound rose sharply against Euro and Dollar on Tuesday as traders responded to the latest IHS Markit services PMI, which showed activity within the UK's largest economic sector rising strongly in May.
Finally, the rupee ended at 67.15, 3 paise weaker from its previous close of 67.12 on Monday. The currency touched a high and low of 67.23 and 67.09 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 67.17 and for Euro stood at 78.53 on June 05, 2018. While, the RBI’s reference rate for the Yen stood at 61.14, the reference rate for the Great Britain Pound (GBP) stood at 89.42. The reference rates are based on 12 noon rates of a few select banks in Mumbai.
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