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Rupee weakens on increased demand for American currency from importers

01 Mar 2019 Evaluate

Indian rupee weakened against the US dollar on Friday on account of increased demand for the American currency from importers amid foreign fund outflows. Further, firm dollar against major rival currencies overseas on stronger US economic data also added pressure on the domestic currency. Though, firm domestic equities capped the slide in the Indian unit to some extent. On the macro-economic front, a caution prevailed after official data showed that country’s economic growth slowed to a 5-quarter low of 6.6 percent in the October-December period. Also, economic growth estimate for the current fiscal year ending March 31 has been revised downwards to 7 percent from the earlier estimate of 7.2 percent. This is the lowest growth in the last five years. On the global front, the dollar scaled a 10-week high against the yen, thanks to a surge in Treasury yields after US gross domestic product data topped expectations.

The partially convertible currency is currently trading at 70.83, weaker by 11 paise from its previous close of 70.72 on Thursday. The currency touched a high and low of 70.8950 and 70.7000 respectively. The reference rate for the dollar stood at 71.19 and for Euro stood at 80.97 on February 28, 2019. While the reference rate for the Yen stood at 64.24, the reference rate for the Great Britain Pound (GBP) stood at 94.70.

Date1US$1GBP
February 28, 201971.195394.7021
February 27, 201971.166394.2152

(Reference Rate)

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