Indian rupee ended considerably weaker against the US dollar on Monday, due to strong dollar demand from banks. Market participants also remained worried on report that Moody's Investors Service revised downwards India's GDP growth forecast for the current year to 6.2%, saying the economy remains sluggish due to a combination of factors such as weak hiring, distress among rural households and tighter financial conditions. Traders failed to take support with CII’s statement that the multi-sectoral and multi-dimensional policy stimulus announced last week will have significant impact, imparting stability and underpinning a new growth impetus for India. On the global front, China's currency on Monday slid to its lowest point in more than 11 years as concerns over the US trade war and the potential for global recession weighed on markets.
Finally, the rupee ended at 72.02, 36 paise weaker from its previous close of 71.66 on Friday. The currency touched a high and low of 72.25 and 71.86 respectively. The reference rate for the dollar stood at 71.72 and for Euro stood at 79.39 on August 23, 2019. While the reference rate for the Yen stood at 67.26, the reference rate for the Great Britain Pound (GBP) stood at 87.61.
