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Rupee weakens on increased demand for American currency from importers, banks

28 Mar 2019 Evaluate

Indian rupee weakened against the US dollar on Thursday on account of increased demand for the American currency from importers and banks. Besides, strengthening of the American currency in overseas market too weighed on the domestic currency. Rupee dipped further after RBI’s first ever rupee-dollar swap auction. In the auction, RBI bought dollars totaling $5.02 billion at a premium of Rs 7.76, which works out to an annualised rate of 3.76 percent. However, sustained foreign fund inflows and higher opening in domestic equities supported the rupee and restricted the fall. Foreign institutional investors (FIIs) remained net buyers in the capital markets, putting in Rs 1,481.11 crore Wednesday, as per provisional data. On the global front, the dollar rose as many of its peers weakened after more central banks opted to shift to a dovish policy stance in the wake of deteriorating economic prospects.

The partially convertible currency is currently trading at 69.03, weaker by 15 paise from its previous close of 68.88 on Wednesday. The currency touched a high and low of 69.0600 and 68.9700 respectively. The reference rate for the dollar stood at 68.90 and for Euro stood at 77.60 on March 27, 2019. While the reference rate for the Yen stood at 62.33, the reference rate for the Great Britain Pound (GBP) stood at 90.87.

Date1US$1GBP
March 27, 2019 68.903090.8753
March 26, 201968.846990.7737

(Reference Rate)

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