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Rupee extends fall for fourth day

18 Feb 2019 Evaluate

Extending fall for the fourth day, Indian rupee ended weaker against dollar on Monday, on continued demand for the American unit. Traders remained cautious with the Reserve Bank of India’s (RBI) data report showing that the country's foreign exchange reserves declined by $2.119 billion to $398.122 billion in the week to February 8, due to fall in foreign currency assets. In the previous week, the reserves had surged by $2.063 billion to $ 400.24 billion. Besides, heavy losses in domestic equity markets weighed on the domestic unit. However, local currency gave up most of its intraday session losses, as traders found some support with data showing that India's exports grew by 3.74 percent to $26.36 billion in January, as exports of gems and jewellery, chemicals and pharmaceuticals increased. The trade deficit narrowed to $14.73 billion in January 2019 as against $15.67 billion in the same month previous year. On the global front, dollar was marginally weaker on Monday, as increasing expectations of a United States (US)-Sino trade deal led investors to shift away from the safety of the greenback into riskier assets.

Finally, the rupee ended at 71.34, 11 paise weaker from its previous close of 71.23 on Friday. The currency touched a high and low of 71.52 and 71.32 respectively. The reference rate for the dollar stood at 71.47 and for Euro stood at 80.81 on February 18, 2019. While the reference rate for the Yen stood at 64.64, the reference rate for the Great Britain Pound (GBP) stood at 92.26.  

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