Continuing its record closing low for second straight day, Indian rupee ended weaker against the Greenback on Thursday, following fresh demand for the US currency from banks and importers to meet the month end dollar demand. Sentiments weakened with Credit rating agency Moody’s Investors Service report highlighting 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. Adding to the pessimism, the Reserve Bank of India (RBI) reiterated concerns over rising inflationary pressures this fiscal year due to global and domestic pressures and called for continuous vigil to keep them at bay. On the global front, the dollar fell for a fifth consecutive day on Thursday as easing concerns over trade conflicts fuelled appetite for riskier currencies though thin month-end markets checked losses.
Finally, the rupee ended at 70.73, 16 paise weaker from its previous close of 70.57 on Wednesday. The currency touched a high and low of 70.85 and 70.57 respectively. The reference rate for the dollar stood at 70.73 and for Euro stood at 82.71 on August 30, 2018. While the RBI’s reference rate for the Yen stood at 63.34, the reference rate for the Great Britain Pound (GBP) stood at 92.15. The reference rates are based on 12 noon rates of a few select banks in Mumbai.
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