Indian rupee depreciated against the American currency on Monday. Rupee weakened with Reserve Bank of India’s (RBI) data showing that India’s foreign exchange (Forex) reserves slipped by $33.2 million during the week ended August 17. Traders also remain concerned with a private report stating that high borrowing costs and weakness in rupee is expected to impact corporates, while uncertainties in the global market has the potential to derail the global growth story. However, Former Niti Aayog’s vice-chairman Arvind Panagariya’s statement that rupee depreciation is not cause to worry and it was pending for a long time, failed to provide any support to rupee. On the global front, the dollar remained under some pressure after the head of the Federal Reserve suggested it would not speed up its pace of lifting interest rates.
Finally, the rupee ended at 70.15, 24 paise weaker from its previous close of 69.91 on Friday. The currency touched a high and low of 70.23 and 69.70 respectively. The reference rate for the dollar stood at 70.03 and for Euro stood at 81.30 on August 27, 2018. While the RBI’s reference rate for the Yen stood at 63.07, the reference rate for the Great Britain Pound (GBP) stood at 89.95. The reference rates are based on 12 noon rates of a few select banks in Mumbai.
