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Rupee ends tad lower against dollar on Tuesday

23 Oct 2018 Evaluate

Indian rupee ended marginally lower against US dollar on Tuesday, due to fresh demand for the American currency from banks and importers. Traders remained cautious with reports that the crude oil import bill for India is expected to increase by $37 billion to $125 billion during the current financial year (2018-19, or FY19) - a 42% spike over the 2017-18 (FY18) bill of $88 billion. Moreover, weakness in local stocks, which slipped for a fourth-straight session, also weighed on the rupee. However, the local currency trimmed most of its initial losses, as traders found some support with report that the net direct tax collection in the country grew by 15.7% on year-on-year basis to reach Rs 4.89 lakh crore in the current fiscal till third week of October. This marks over 42% of the full-year direct tax collection target of Rs 11.5 lakh crore for the fiscal ending March 31, 2019. On the global front, euro rose on Tuesday before a meeting of the European Commission on Italy's budget that could see Brussels take the unprecedented step of rejecting it and demanding changes.

Finally, the rupee ended at 73.57, 1 paise weaker from its previous close of 73.56 on Monday. The currency touched a high and low of 73.82 and 73.52 respectively. The reference rate for the dollar stood at 73.78 and for Euro stood at 84.47 on October 23, 2018. While the reference rate for the Yen stood at 65.62, the reference rate for the Great Britain Pound (GBP) stood at 95.55. The reference rates are based on 12 noon rates of a few select banks in Mumbai.

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