Indian rupee continued to slide against the American currency for the third day on Monday, on increased demand for the greenback from importers and banks. Traders remained anxious with apex exporters’ body FIEO’s statement that further escalation in the tension between the US and Iran will have implications on India’s exports to the Persian Gulf nation. Besides, a sharp sell-off in the domestic stock market put pressure on the rupee. However, local unit cut most of the early losses, taking support from the a private survey showed that the services industry accelerated to a five-month high in December 2019, raising hopes of an economic recovery. The IHS Markit Services Purchasing Managers’ Index (PMI) rose to 53.3 in December from 52.7 in November. This is the second straight month of expansion for Services PMI. On the global front, safe-haven Japanese yen hit a three-month high on Monday, as increasing tensions between Iran and the United States sent investors scurrying to less risky assets.
Finally, the rupee ended at 71.93, 13 paise weaker from its previous close of 71.80 on Friday. The currency touched a high and low of 72.11 and 71.93 respectively. The reference rate for the dollar stood at 71.69 and for Euro stood at 80.05 on January 3, 2020. While the reference rate for the Yen stood at 66.32, the reference rate for the Great Britain Pound (GBP) stood at 93.98.
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