Indian rupee breached the psychological 68/dollar mark to hit its lowest in three week on Friday, following steady uptick in dollar demand from importers and banks. Cautiousness prevailed with a report stating that India’s trade deficit will continue to increase in 2018-19 despite faster exports growth, as imports are expected to increase at a much higher rate. Some pessimism also came with a report that Private equity (PE) investments saw 50% decline in value terms in May at $1,180 million amid fall in big-ticket deals and cautious investor approach. On the global front, dollar index against a basket of major currencies rose to a seven-month high on Friday, getting a boost as the euro sagged after a cautious European Central Bank signaled it will keep interest rates at record lows well into next year.
Finally, the rupee ended at 68.02, 39 paise weaker from its previous close of 67.63 on Thursday. The currency touched a high and low of 68.04 and 67.89 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 67.97 and for Euro stood at 78.60 on June 15, 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 89.99. The reference rates are based on 12 noon rates of a few select banks in Mumbai.
