Indian rupee pared most of its early losses but still ended weaker against the American currency on Thursday, due to dollar demand from banks and importers. Sentiments remained down-beat with a private report stating that exchange rate movements increase the vulnerability of firms from emerging market economies, including India, which have used the proceeds of dollar bond to fund financial assets. Besides, heavy losses in domestic equity markets also weighed on the sentiments of the local currency. However, the dollar's weakness against some currencies overseas and easing crude oil prices, capped rupee's losses. On the global front, U.S. dollar slipped as the euro strengthened slightly early Thursday, as investors were awaiting the European Central Bank’s policy update.
Finally, the rupee ended at 73.27, 11 paise weaker from its previous close of 73.16 on Wednesday. The currency touched a high and low of 73.37 and 73.19 respectively. The reference rate for the dollar stood at 73.27 and for Euro stood at 83.64 on October 25, 2018. While the reference rate for the Yen stood at 65.33, the reference rate for the Great Britain Pound (GBP) stood at 94.61. The reference rates are based on 12 noon rates of a few select banks in Mumbai.
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