Indian rupee witnessed depreciation and settled on weaker note amid strengthening of the American currency and weakness in domestic equities. Rupee sentiments also remained dampened after the government has once again missed its Rs 1 lakh crore target of gathering revenue from Goods and Services Tax (GST) in the month of December 2018. The GST collection declined to Rs 94,726 crore in December, lower than Rs 97,637 crore collected in November. Sentiments also weighed down on report that the Indian manufacturing sector slowed down in the month of December, despite easing cost inflationary pressures. Growth was curtailed by competitive pressures, labour issues and challenging public policies. As per the survey report, the Nikkei India Manufacturing Purchasing Managers’ Index (PMI) - a composite single-figure indicator of manufacturing performance - eased to 53.2 in December from 54 in November. Meanwhile, foreign funds pulled out Rs 48.19 crore from the capital markets on a net basis, while domestic institutional investors bought shares worth Rs 142.58 crore on Tuesday, provisional data showed.
Finally, the rupee ended at 70.18, 75 paise weaker from its previous close of 69.43 on Tuesday. The currency touched a high and low of 70.23 and 69.55 respectively. The reference rate for the dollar stood at 69.71 and for Euro stood at 79.93 on January 1, 2019. While the reference rate for the Yen stood at 63.57, the reference rate for the Great Britain Pound (GBP) stood at 88.97.
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