Indian rupee continued its declining trend against dollar on Friday. Sentiments were fragile as FPIs have dumped Indian shares worth Rs 50,203 crore in June. It is the highest net outflow in over two years. Traders ignored Economic Affairs Secretary Ajay Seth’s statement that the measures taken by Reserve Bank of India (RBI) will increase inflows of overseas funds and help in strengthening the rupee against the US dollar. RBI on Wednesday raised the overseas borrowing limits for companies and liberalised norms for foreign investments in government bonds as it announced a slew of measures to boost foreign exchange inflows. On the global front, safe-haven demand briefly lifted the yen on Friday after former Japanese Prime Minister Shinzo Abe was shot while campaigning for a parliamentary election.
Finally, the rupee ended at 79.21 (provisional), weaker by 8 paisa from its previous close of 79.13 on Thursday. The currency touched a high and low of 79.32 and 79.21 respectively.
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