Indian rupee ended significantly weaker against the Greenback on Thursday, following fresh demand for the US currency from banks and importers to meet the month end dollar demand. Sentiments weakened with India Ratings and Research’s report stating that farm loan waivers announced by a number of states recently will adversely impact the combined state government capex spending. Investors ignored a private report that with global crude oil prices slumping to below $50 a barrel just months after crossing $86, the Prime Minister Narendra Modi-led government is now confident that the current account deficit (CAD) for 2018-19 (FY19) can be contained at about 2 per cent of gross domestic product (GDP). On the global front, the dollar held on to most of its overnight gains on Thursday as investors cheered signs of easing US-Sino trade tensions and stronger-than-expected US economic data, sending Wall Street stocks surging and Treasury yields up.
Finally, the rupee ended at 70.35, 29 paise weaker from its previous close of 70.06 on Wednesday. The currency touched a high and low of 70.39 and 70.18 respectively. The reference rate for the dollar stood at 70.32 and for Euro stood at 80.02 on December 27, 2018. While the reference rate for the Yen stood at 63.25, the reference rate for the Great Britain Pound (GBP) stood at 88.98.
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