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Rupee hits 1-month low against dollar

08 Jun 2018 Evaluate

Stretching the slide for the second straight day, Indian rupee depreciated to near one-month low against dollar on Friday, on increased buying of the US currency by Importers and banks. The domestic currency made a weak start and remained under pressure throughout the day due to the dollar strength against other currencies overseas. Traders also remained concerned with Moody’s Investors Service’s statement that India could prune its capital expenditure to avoid any slippage of its fiscal deficit target of 3.3% of GDP in the current fiscal, but warned any reduction in the excise duty on petroleum products would exert negative pressure on the country’s sovereign credit profile. Market participants even overlooked DIPP Secretary Ramesh Abhishek's statement that foreign direct investment in India increased to $61.96 billion in 2017-18. He also said during the four years of the Modi government, foreign inflows jumped to $222.75 billion from $152 billion in the previous four-year period. On the global front, dollar and yen moved higher against other major currencies on Friday as worries over what is shaping up to be a tense G-7 summit sparked a flight into assets considered safer than others.

Finally, the rupee ended at 67.51, 39 paise weaker from its previous close of 67.12 on Thursday. The currency touched a high and low of 67.78 and 67.43 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 67.52 and for Euro stood at 79.58 on June 08, 2018. While, the RBI’s reference rate for the Yen stood at 61.60, the reference rate for the Great Britain Pound (GBP) stood at 90.60. The reference rates are based on 12 noon rates of a few select banks in Mumbai.

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