Extending weakness for the second day, Indian rupee depreciated considerably against dollar on Wednesday, amid worsening of the ongoing RBI-govt spat which is seen as a threat to the central bank's autonomy. Traders also remained cautious with a private report stating that India, which presently has a rich demographic dividend, will need 9.94 crore additional jobs over the decade. It highlighted warning that lack of concrete efforts could push India into jobless growth. Moreover, 80% of the new jobs demand will come from Tier 2 and Tier 3 districts of just 10 states. The market participants overlooked SBI study report showing that inflation is likely to remain below 4% in the coming months, notwithstanding possible increase in onion prices. On the global front, dollar rose to its highest levels in more than a year on Wednesday, as dovish comments by the Bank of Japan and weak data from China reinforced the greenback’s attractiveness as an investment destination.
Finally, the rupee ended at 73.95, 27 paise weaker from its previous close of 73.68 on Tuesday. The currency touched a high and low of 74.14 and 73.79 respectively. The reference rate for the dollar stood at 73.99 and for Euro stood at 83.92 on October 31, 2018. While the reference rate for the Yen stood at 65.36, the reference rate for the Great Britain Pound (GBP) stood at 94.10. The reference rates are based on 12 noon rates of a few select banks in Mumbai.
