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Rupee ends weaker on dollar strength overseas

01 Mar 2019 Evaluate

Reversing previous session’s gains, Indian rupee ended weaker against the US dollar on Friday, on the back of consistent demand for the greenback from state-run banks and importers. Sentiment remain dampened with the Central Statistics Office’s (CSO) data stating that India’s economic growth slowed to a 5-quarter low of 6.6% in October-December period of this fiscal on the back of lower farm and manufacturing growth and weaker consumer demand. The Gross Domestic Product (GDP) at constant prices (2011-12) had grown at 7 per cent in October-December quarter of the previous financial year. Some anxiety also spread among the local traders with the government’s data showing that eight core industries grew at the slowest pace in 19 months in January as the production of crude oil, refinery products and electricity contracted. However, positive trend in equity market helped in restricting the slide in the Indian unit to some extent. On the global front, dollar moved higher on Friday, hitting a 10-week high against the yen, as a jump in U.S. Treasury rates sent investors chasing higher yields into the greenback.

Finally, the rupee ended at 70.92, 20 paise weaker from its previous close of 70.72 on Thursday. The currency touched a high and low of 70.99 and 70.70 respectively. The reference rate for the dollar stood at 70.96 and for Euro stood at 80.71 on March 1, 2019. While the reference rate for the Yen stood at 63.49, the reference rate for the Great Britain Pound (GBP) stood at 94.08.

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