Continuing its free fall for the third straight session, Indian rupee depreciated considerably against dollar on Monday, on increased demand for the US currency from importers. The domestic currency was also weighed down by sharp losses in the local equities. Market participants paid no heed towards a monthly survey showed the country’s services sector activity in July returned to growth territory driven by new business orders that rose at fastest pace since October 2016, following which job creation picked up. The IHS Markit India Services Business Activity Index rose to 53.8 in July from 49.6 in June, pointed to the quickest increase in output in one year. On the global front, U.S. dollar dropped against its major rivals on Monday, as a risk-off mood triggered by mounting trade concerns sent investors fleeing, even from the usually safe haven Japanese currency.
Finally, the rupee ended at 70.73, Rs 1.13 weaker from its previous close of 69.60 on Friday. The currency touched a high and low of 70.74 and 70.18 respectively. The reference rate for the dollar stood at 69.39 and for Euro stood at 76.93 on August 2, 2019. While the reference rate for the Yen stood at 64.82, the reference rate for the Great Britain Pound (GBP) stood at 84.08.
