Indian rupee weakened considerably against dollar on Monday, due to fresh demand for American currency from banks and importers. The rupee sentiment was hit with credit rating agency, Care Ratings’ latest report stated that the monsoon deficit is likely to lead to lower production. The report further noted that the country is still facing a rainfall deficit of 7%, on a cumulative basis and the overall sown area is 7.5% less than last year. The domestic currency was also weighed down by dollar's strengthen against some other currencies overseas. Traders failed to get relief with the Confederation of Indian Industry’s (CII) statement that with the US imposing an additional 25% duty on imports worth $34 billion from China, certain Indian products may become more competitive. On the global front, dollar edged towards a one-year high on Monday, as trade war rhetoric between the United States and its trading partners helped the US currency.
Finally, the rupee ended at 68.88, 27 paise weaker from its previous close of 68.61 on Friday. The currency touched a high and low of 68.89 and 68.53 respectively. The reference rate for the dollar stood at 68.68 and for Euro stood at 79.38 on August 6, 2018. While the RBI’s reference rate for the Yen stood at 61.71, the reference rate for the Great Britain Pound (GBP) stood at 89.25. The reference rates are based on 12 noon rates of a few select banks in Mumbai.
