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Rupee weakens on fresh demand for US currency from importers

26 Feb 2019 Evaluate

Indian rupee weakened against US dollar on Tuesday on account of fresh demand for the US currency from importers. Further, strength in dollar against some currencies overseas and weak domestic equities kept pressure on the domestic unit. Moreover, escalating tensions between India and Pakistan added to pressure on the forex market. Reports showing that Indian Air Force on Tuesday carried out aerial strikes at major terror camps in Pakistan occupied Kashmir, completely destroying them, 12 days after the ghastly terror attack in Pulwama. On the global front, the pound jumped to a near four-week peak against the dollar on reports of a delayed Brexit deadline, and the safe-haven yen moved off the weakest seen this year as a drop in US equity futures checked investors’ risk appetite.

The partially convertible currency is currently trading at 71.05, weaker by 8 paise from its previous close of 70.97 on Monday. The currency touched a high and low of 71.3500 and 70.9900 respectively. The reference rate for the dollar stood at 71.04 and for Euro stood at 80.60 on February 25, 2019. While the reference rate for the Yen stood at 64.22, the reference rate for the Great Britain Pound (GBP) stood at 92.88.

Date1US$1GBP
February 25, 2019 71.042092.8808
February 22, 201971.217792.8271

(Reference Rate)

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