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Rupee extends weakness for second straight session

25 Apr 2019 Evaluate

Extending weakness for the second day, Indian rupee ended significantly weaker against dollar on Thursday, as good demand for the greenback from importers and weakness in domestic shares. Traders remained concerned with a private report stating that Indians are becoming increasingly worried about the economy's condition, with fewer citizens believing that the local economy is getting better. Cautiousness also crept in with World Bank forecasted slowdown in East Asia and Pacific economies in 2019. Growth of East Asia and the Pacific (EAP) will remain at 6.0 per cent in 2019, which is down from 6.3 per cent in 2018. Different factors marred slow growth in major economies which suffered due to economic policies. A broad strengthening of the US dollar and elevated oil price have put the Indian currency under renewed pressure. On the global front, euro steadied against the dollar on Thursday after renewed worries about a growth slowdown in Germany drove it to a 22-month low overnight, while the yen showed little reaction to a Bank of Japan policy decision.

Finally, the rupee ended at 70.25, 38 paise weaker from its previous close of 69.86 on Wednesday. The currency touched a high and low of 70.27 and 69.92 respectively. The reference rate for the dollar stood at 69.94 and for Euro stood at 78.05 on April 25, 2019. While the reference rate for the Yen stood at 62.49, the reference rate for the Great Britain Pound (GBP) stood at 90.25.

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