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Rupee hits record low against dollar on Wednesday

29 Aug 2018 Evaluate

Indian rupee slumped to a fresh record low against the US dollar on Wednesday, following bouts of month-end dollar demand from banks and importers. Investors remained cautious with a private report that the Indian economy is in for a rough ride, with rising oil prices set to continue weighing on its already-weakened currency, widen its deficit, and affect its growth outlook. Sentiments also remained dampened with Credit rating agency Moody's Investors Service report that there are risks of India breaching the 3.3% fiscal deficit target for the current financial year as higher oil prices will add to short-term fiscal pressures. The rupee’s losses were also caused by late hour sell-off in domestic equity market. On the global front, dollar rose on Wednesday as relief about a US-Mexico trade deal gave way to concern among investors that the conflict over trade between the US and China was not about to end soon.

Finally, the rupee ended at 70.57, 47 paise weaker from its previous close of 70.10 on Tuesday. The currency touched a high and low of 70.65 and 70.24 respectively. The reference rate for the dollar stood at 70.50 and for Euro stood at 82.33 on August 29, 2018. While the RBI’s reference rate for the Yen stood at 63.42, the reference rate for the Great Britain Pound (GBP) stood at 90.62. The reference rates are based on 12 noon rates of a few select banks in Mumbai.   

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