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Rupee hits record closing low against dollar on Thursday

04 Oct 2018 Evaluate

Continuing its free fall for the third straight session, Indian rupee slumped to a fresh record closing low against the US dollar on Thursday, on the back of rising global oil prices, and concerns over current account deficit and capital outflows. Traders remained cautious with survey indicating that the India’s services sector expanded at a slower pace in September as higher fuel costs and stronger US dollar made imported goods expensive. The seasonally-adjusted Nikkei India Services Business Activity Index touched 50.9 in September, down from 51.5 recorded in August. Moreover, sharp fall in equities too affected the rupee. However, the local currency trimmed most of its initial losses, as traders found some support with Finance Ministry indicating that gross direct tax collection in the first six months of the financial year grew 16.7 per cent to Rs 5.47 lakh crore. On the global front, dollar held at a six-week high on Thursday as an overnight jump in US Treasury yields on the back of strong data prompted investors to add long bets in the greenback against higher-yielding and emerging market currencies.

Finally, the rupee ended at 73.58, 24 paise weaker from its previous close of 73.34 on Wednesday. The currency touched a high and low of 73.81 and 73.40 respectively. The reference rate for the dollar stood at 73.75 and for Euro stood at 84.62 on October 4, 2018. While the reference rate for the Yen stood at 64.49, the reference rate for the Great Britain Pound (GBP) stood at 95.39. The reference rates are based on 12 noon rates of a few select banks in Mumbai.

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