Indian rupee ended lower against US dollar on Monday on dollar demand by importers and banks. The rupee sentiment was dampened despite Reserve Bank of India’s (RBI) report showing that India’s foreign exchange reserves increased by $4.239 billion to hit a record high of $437.833 billion as on October 4. Traders also shrugged off reports that India’s Wholesale price index (WPI) inflation fell sharply at 0.33% in the month of September 2019 as against 1.08% (provisional) for the previous month and 5.22% during the corresponding month of the previous year. Good going in the local equity markets too failed to support rupee. On the global front, dollar rose on Monday as investors headed into safer assets after they became more cautious that progress was being made toward a comprehensive U.S.-China trade deal.
Finally, the rupee ended at 71.23, 21 paise weaker from its previous close of 71.02 on Friday. The currency touched a high and low of 71.23 and 70.74 respectively. The reference rate for the dollar stood at 71.02 and for Euro stood at 78.24 on October 11, 2019. While the reference rate for the Yen stood at 65.78, the reference rate for the Great Britain Pound (GBP) stood at 88.42.
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