Indian Rupee weakened against the US dollar on Wednesday, ahead of the Reserve Bank of India’s (RBI) monetary policy announcement scheduled today. Further, fresh demand for the US currency too supported rupees’ upward momentum, but a firm domestic equity market capped the losses. Meanwhile, major currencies were mostly weak against the dollar on reports that US President Donald Trump plans to propose slapping a 25 percent tariffs on $200 billion of imported Chinese goods, after initially setting them at 10 percent. Policy meetings of the US Federal Reserve (August 01) and Bank of England (August 02), were also keeping investors cautious; although the US central bank is expected to keep the interest rates unchanged.
The partially convertible currency is currently trading at 68.58, weaker by 3 paise from its previous close of 68.55 on Tuesday. The currency touched a high and low of 68.5900 and 68.4900 respectively. The reference rate for the dollar stood at 68.60 and for Euro stood at 80.36 on July 31, 2018. While the RBI’s reference rate for the Yen stood at 61.69, the reference rate for the Great Britain Pound (GBP) stood at 90.08. The reference rates are based on 12 noon rates of a few select banks in Mumbai.
