Indian rupee depreciated against dollar on Thursday due to fresh dollar demand from banks and importers. Sentiments also remained sluggish with report that foreign direct investment (FDI) to India declined to $40 billion in 2017 from $44 billion in the previous year. FDI inflows to South Asia contracted by 4% to $52 billion, owing to a drop in inflows to India. Besides, some concern also came in on report that the RBI’s decision to increase the key lending rate by 25 basis points will hurt India’s growth prospects and hit business sentiment. However, weakness in US dollar against other currencies, including the euro, limited the rupee's further fall. On the global front, euro climbed to a three-week high on Thursday, as investors raised their bets that the European Central Bank will next week signal a winding down of its vast bond-buying programme by the end of this year.
Finally, the rupee ended at 67.12, 19 paise weaker from its previous close of 66.93 on Wednesday. The currency touched a high and low of 67.14 and 66.94 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 67.01 and for Euro stood at 79.10 on June 07, 2018. While, the RBI’s reference rate for the Yen stood at 60.91, the reference rate for the Great Britain Pound (GBP) stood at 90.04. The reference rates are based on 12 noon rates of a few select banks in Mumbai.
