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Rupee ends marginally weaker against US dollar

07 Aug 2019 Evaluate

Extending losses for the fifth day in a row, Indian rupee ended marginally weaker against the US dollar on Wednesday, due to increased demand of the greenback from the importers and the banks. Investors remained cautious with the Reserve Bank of India (RBI) lowered the GDP growth projection for 2019-20 to 6.9 per cent from 7 per cent forecast in the June policy, and underlined the need for addressing growth concerns by boosting aggregate demand. The rupee’s losses were also caused by late hour sell-off in domestic equity market. However, losses were limited as traders found some support after the RBI cut key interest rate by 35 basis points to boost the slowing economy. On the global front, dollar fell against yen in a sign investors remain wary that China's currency policy has become a new flashpoint in its trade war with the United States. 

Finally, the rupee ended at 70.89, 8 paise weaker from its previous close of 70.81 on Tuesday. The currency touched a high and low of 70.99 and 70.62 respectively. The reference rate for the dollar stood at 70.72 and for Euro stood at 79.24 on August 6, 2019. While the reference rate for the Yen stood at 66.41, the reference rate for the Great Britain Pound (GBP) stood at 85.99.

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