Indian rupee ended considerably weaker against the US dollar on Monday, tracking panic selling in the local equity markets. Investors remain concerned with CII report that over 40 per cent of Indian companies surveyed by industry chamber CII are expecting that the Reserve Bank will go in for a further hike in interest rates in the current fiscal. Investors ignored the report that Fitch Ratings has raised India’s growth forecast for the current fiscal to 7.8 percent, from 7.4 percent projected earlier. In its Global Economic Outlook, Fitch, however, flagged tightening of financial conditions, rising oil bill and weak bank balance sheets as headwinds to growth. Moreover, the greenback’s strength against other currencies overseas also put pressure on the rupee. On the global front, dollar edged higher on Monday, snapping a two-week losing streak, as investors bought the greenback before a widely expected interest rate hike by the U.S. central bank this week while trade war concerns checked investor appetite for risk.
Finally, the rupee ended at 72.63, 43 paise weaker from its previous close of 72.20 on Friday. The currency touched a high and low of 72.73 and 72.34 respectively. The reference rate for the dollar stood at 72.69 and for Euro stood at 85.25 on September 24, 2018. While the reference rate for the Yen stood at 64.61, the reference rate for the Great Britain Pound (GBP) stood at 94.99. The reference rates are based on 12 noon rates of a few select banks in Mumbai.
