Falling for the second consecutive session, Indian rupee depreciated against dollar on Friday, on increased demand for the US currency from importers. Sentiments remained weak with the Controller General of Accounts’ (CGA) data showing that the fiscal deficit of the Central government has widened in the first half of 2018-19 to 95.3% of the Budget Estimate (BE), mainly on account of slow growth in revenue collections. The deficit was at 91.3% of BE at September-end of the last financial year. Some cautiousness also crept in with a private report stating that India’s tight money conditions and fears of a contagion following a debt crisis at a local lender dented demand and put a muzzle on animal spirits in the world’s fastest-growing major economy. Moreover, weakness in local stocks, which slipped for a second-straight session, also weighed on the rupee. On the global front, dollar rose on Friday, as investors waited to see if U.S. economic growth figures do anything to interrupt its months of strength.
Finally, the rupee ended at 73.47, 20 paise weaker from its previous close of 73.27 on Thursday. The currency touched a high and low of 73.47 and 73.28 respectively. The reference rate for the dollar stood at 73.37 and for Euro stood at 83.40 on October 26, 2018. While the reference rate for the Yen stood at 65.41, the reference rate for the Great Britain Pound (GBP) stood at 94.05. The reference rates are based on 12 noon rates of a few select banks in Mumbai.
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