Indian rupee pared all of its gains and ended weaker against the American currency on Monday, due to fresh demand for the American currency from banks and importers. Traders remained cautious with the Reserve Bank of India’s (RBI) report showing that India’s forex reserves declined by $5.14 billion during the week ended October 12, when the rupee slipped to 74 and beyond against the US dollar. The RBI’s weekly statistical supplement showed that overall forex reserves decreased to $394.46 billion from $399.60 billion reported for the week ended October 5. Adding pessimism among investors, job creation slowed down by 8.39 percent to stand at 8,94,769 in August month as against the revised figure of 9,76,675 in July month. Besides, dollar’s strength against major global currencies overseas along with late hour selloff in the domestic equity markets, weighed on the rupee sentiment. On the global front, euro failed to hold early-session gains on Monday as investors focused on the likelihood of further political uncertainty in Europe over Italy's spending plans, despite a large drop in Italian government borrowing costs.
Finally, the rupee ended at 73.56, 24 paise weaker from its previous close of 73.32 on Friday. The currency touched a high and low of 73.56 and 73.19 respectively. The reference rate for the dollar stood at 73.30 and for Euro stood at 84.57 on October 22, 2018. While the reference rate for the Yen stood at 65.02, the reference rate for the Great Britain Pound (GBP) stood at 95.93. The reference rates are based on 12 noon rates of a few select banks in Mumbai.
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