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Indian rupee depreciates after 7 days of gain

26 Nov 2018 Evaluate

Paring all its initial gains, Indian rupee ended weak against the American currency on Monday due to dollar demand from banks and importers. Rupee snapped 7 days of winning streak as traders were cautious with India Ratings (Ind-Ra) latest report stating that a change of even $1 per barrel would impact India’s import bill by Rs 6,160 crore, as the country continues to be a large importer of crude oil. India meets over 80% of its oil demand through imports. Some pessimism also crept in with National Green Tribunal chairman Justice Adarsh Kumar Goel stating that India has earned its pride of place in the world with its economy growing very fast but a large number of people still live below the poverty line. On the global front, the dollar was lower on Monday, with the euro and the pound gaining ground as concerns over Italy’s budget row eased, but investors remained cautious as a host of geopolitical risks continued to loom over markets.

Finally, the rupee ended at 70.87, 18 paise weaker from its previous close of 70.69 on Thursday. The currency touched a high and low of 70.89 and 70.30 respectively. The reference rate for the dollar stood at 70.71 and for Euro stood at 80.26 on November 26, 2018. While the reference rate for the Yen stood at 62.47, the reference rate for the Great Britain Pound (GBP) stood at 90.64. The reference rates are based on 12 noon rates of a few select banks in Mumbai. 

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