Continuing its weakening trend for the fourth straight session, Indian rupee depreciated against dollar on Wednesday, on increased demand for the US currency from importers. Traders remained concerned as exports grew at at 0.34 per cent in December, marking the slowest pace in three months. The dollar’s gain against other currencies overseas also weighed negatively on the market. However, further losses got restricted as some support came with report that declining imports narrowed the trade deficit to ten-month low of $13.08 billion in December 2018 as against $14.2 billion in the same month previous year. On the global front, euro slipped against dollar and pound on Wednesday as worries about the outlook of the euro zone economy weighed on the single currency while sterling edged higher before a no-confidence vote on Prime Minister Theresa May’s government.
Finally, the rupee ended at 71.24, 19 paise weaker from its previous close of 71.05 on Tuesday. The currency touched a high and low of 71.27 and 70.92 respectively. The reference rate for the dollar stood at 71.18 and for Euro stood at 81.17 on January 16, 2019. While the reference rate for the Yen stood at 65.62, the reference rate for the Great Britain Pound (GBP) stood at 91.46.
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