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Rupee hits record closing low for fourth straight day

03 Sep 2018 Evaluate

Continuing its record closing low for the fourth straight day, Indian rupee ended weaker against the Greenback on Monday, hurt by fresh demand for the American currency from importers. The rupee sentiments were hit as business activity in Indian manufacturing sector eased further in August 2018, for a second straight month amid slower gains in output and new orders.  As per the survey report, the Nikkei India Manufacturing Purchasing Managers’ Index (PMI) - a composite single-figure indicator of manufacturing performance -fell to 51.7 in August from 52.3 in July. Sentiments also got spooked with former finance minister P Chidambaram expressing scepticism over India's GDP growth prospects, saying it would ‘not be so favourable’ in third and fourth quarters, despite the GDP growing at 8.2% in the current fiscal's first quarter. He said the country's growth rate might decline in the third and fourth quarters and be the same as that reported in the last fiscal. Besides, a sharp sell-off in the domestic stock market largely led to weaker rupee sentiments. On the global front, dollar was steady on Monday on worries of a prolonged China-US trade war and after the United States and Canada ended contentious trade negotiations without a deal.

Finally, the rupee ended at 71.18, 18 paise weaker from its previous close of 71.00 on Friday. The currency touched a high and low of 71.18 and 70.73 respectively. The reference rate for the dollar stood at 70.76 and for Euro stood at 82.14 on September 3, 2018. While the RBI’s reference rate for the Yen stood at 63.80, the reference rate for the Great Britain Pound (GBP) stood at 91.35. The reference rates are based on 12 noon rates of a few select banks in Mumbai. 


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