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Rupee weakens on increased demand for American unit from importers

18 Oct 2019 Evaluate

Indian rupee weakened against US dollar on Friday due to increased demand for the American unit from importers. Meanwhile, traders are cautiously awaiting fresh cues on potential trade deal between US and China. Traders will also await Reserve Bank of India's minutes of latest monetary policy that is due later today. However, easing crude oil prices and sustained foreign fund inflow supported domestic currency and restricted its losses. Foreign institutional investors (FIIs) net-bought shares worth Rs 1,158.63 crore on October 17, exchange data showed. On the global front, the Yuan held steady against the dollar after data showed China's economy grew at the weakest pace in more than 27 years in the third quarter, while the pound held near a five-month high against the dollar and the euro after Britain's prime minister Boris Johnson and European Union leaders agreed a new deal for Britain to exit the bloc.

The partially convertible currency is currently trading at 71.22, weaker by 6 paise from its previous close of 71.16 on Thursday. The currency touched a high and low of 71.3100 and 71.1300 respectively. The reference rate for the dollar stood at 71.50 and for Euro stood at 79.01 on October 16, 2019. While the reference rate for the Yen stood at 65.77, the reference rate for the Great Britain Pound (GBP) stood at 91.35.

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