Indian rupee continued its downtrend for the second straight day against the US dollar on Friday, due to strong demand for the American currency from importers. Investors remain concerned with the World Bank report showing that India has now taken a backseat to be the seventh largest economy globally with UK and France now ahead of it. As per the data, India grew to $2.73 trillion economy in 2018. In 2017, the country stood at the fifth spot with its size at $2.65 trillion. Traders failed to take support with the India Meteorological Department stating that monsoon is expected to be normal in August and September. Quantitatively, the rainfall across the country as a whole during the two-month period is likely to be 100 per cent of the Long Period Average (LPA) with a model error of plus or minus 8 per cent. On the global front, euro has staged a strong bound against the US dollar, following weak US economic data releases and the recent announcement of fresh trade tariffs.
Finally, the rupee ended at 69.60, 54 paise weaker from its previous close of 69.06 on Thursday. The currency touched a high and low of 69.67 and 69.21 respectively. The reference rate for the dollar stood at 69.05 and for Euro stood at 76.30 on August 1, 2019. While the reference rate for the Yen stood at 63.24, the reference rate for the Great Britain Pound (GBP) stood at 83.74.
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