Continuing its losing streak for the second straight session, Rupee weakened significantly against the American currency on Tuesday. Investors remained cautious with International Monetary Fund’s (IMF) estimates that the real effective depreciation of Indian rupees is between 6-7% compared to December 2017. It said broadly since the beginning of the year, Indian rupee has lost about 11% of its value in nominal terms vis-a-vis the US dollar. Rupee sentiments got hit with credit rating agency, India Ratings and Research’s latest report that banks' credit costs are likely to remain elevated at 2%-3% during FY19-FY20, on the back of ageing of non-performing assets (NPAs), accelerated provisioning and slippages especially from non-corporate accounts. On the global front, the US dollar was flat against other currencies on Tuesday as the White House imposed fresh tariffs on China.
Finally, the rupee ended at 72.97, 48 paise weaker from its previous close of 72.49 on Monday. The currency touched a high and low of 72.97 and 72.35 respectively. The reference rate for the dollar stood at 72.37 and for Euro stood at 84.76 on September 18, 2018. While the reference rate for the Yen stood at 64.59, the reference rate for the Great Britain Pound (GBP) stood at 95.28. The reference rates are based on 12 noon rates of a few select banks in Mumbai.
