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Rupee ends considerably weaker on Monday

05 Nov 2018 Evaluate

Reversing two straight sessions of uptrend, Indian rupee ended significantly weaker against the Greenback on Monday, on account of buying in American currency by banks and importers. Sentiments weakened with a private report stating that with global crude prices remaining elevated, the rupee is likely to be under pressure, and may touch the 76 levels against the US currency over the next three months. Moreover, the greenback’s strength against other currencies overseas also put pressure on the rupee. Traders failed to take support with a monthly survey indicating that the country's services sector in October expanded at the quickest pace since July, driven by significant increase in new business orders, which in turn led to robust workforce expansion. The seasonally adjusted Nikkei India Services Business Activity Index rose to 52.2 in October, from 50.9 in September. On the global front, dollar held steady against most of its major peers on Monday, supported by expectations of tighter US monetary policy.

Finally, the rupee ended at 73.12, 67 paise weaker from its previous close of 72.45 on Friday. The currency touched a high and low of 73.13 and 72.76 respectively. The reference rate for the dollar stood at 73.07 and for Euro stood at 83.25 on November 5, 2018. While the reference rate for the Yen stood at 64.50, the reference rate for the Great Britain Pound (GBP) stood at 94.98. The reference rates are based on 12 noon rates of a few select banks in Mumbai. 

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