Indian rupee ended marginally lower against US dollar on Thursday, due to fresh demand for the American currency from banks and importers. Traders remained cautious with private report stating that the Indian currency will fall further against the U.S. dollar over the next 12 months than previously thought, hit by slowing growth momentum and an escalating global trade war that has recently threatened to engulf India. Heavy losses in domestic equity markets also weighed on the domestic unit. However, losses were limited as some optimism remained among the traders with World Bank report which forecasted that India’s economy is projected to grow at 7.5 per cent in the next three years, supported by robust investment and private consumption, in some good news to the new Indian government. On the global front, U.S. dollar slid lower against the yen on Thursday as safe haven demand continued to be underpinned amid trade tensions, as investors looked ahead to the European Central Bank’s latest policy decision later in the day.
Finally, the rupee ended at 69.28, 2 paise weaker from its previous close of 69.26 on Wednesday. The currency touched a high and low of 69.45 and 69.19 respectively. The reference rate for the dollar stood at 69.29 and for Euro stood at 78.00 on June 6, 2019. While the reference rate for the Yen stood at 64.21, the reference rate for the Great Britain Pound (GBP) stood at 87.83.
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