Indian rupee ended considerably weaker against the US dollar on Monday, on fresh bouts of dollar demand from importers. The rupee came under pressure due to extremely bullish dollar sentiment overseas coupled with sluggish equity markets. Market participants also remained worried on a report of Department of Industrial Policy and Promotion (DIPP) which highlighted that India’s foreign direct investment (FDI) growth rate hit five-year low of 3% in 2017-18. According to the latest data of the Department of Industrial Policy and Promotion (DIPP) inflows grew by only 3% to $44.85 billion in 2017-18. There was also caution among investors with reports that India’s fiscal deficit has exceeded 55% of Budget estimate in first two months of FY19. On the global front, dollar edged higher on Monday, closing in on last week's one-year high, as investors ramped up bets that escalating trade tensions between the U.S. and its trade partners will hurt the world's biggest economy the least for now.
Finally, the rupee ended at 68.79, 32 paise weaker from its previous close of 68.47 on Friday. The currency touched a high and low of 68.80 and 68.33 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 68.62 and for Euro stood at 79.95 on July 2, 2018. While the RBI’s reference rate for the Yen stood at 62.00, the reference rate for the Great Britain Pound (GBP) stood at 90.43. The reference rates are based on 12 noon rates of a few select banks in Mumbai.
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