Indian rupee, prolonging previous session’s slide, was trading weaker against dollar on Tuesday on account of increased dollar demand from oil importers and bank, in view of its strength in the overseas markets. Further, massive selling in local equity markets, also is weighed on the sentiment. The currency is also trading sideways as investors anxiously wait for any fresh measures with Raghuram Rajan taking over the reins of RBI as the new governor on September 5. Meanwhile, slew of foreign agencies, downgrading their GDP growth estimates on Indian economy, is also adding to the negatives of Indian currency. So far, foreign agencies CLSA, HSBC and Nomura have downgraded their gross domestic product (GDP) growth estimates for India after the economy grew lower-than-expected in the June quarter. On the global front, while safe-haven yen stood near one-month lows against the dollar on Tuesday, having fallen broadly as fresh signs of a pickup in global manufacturing activity helped lift risk appetites.
The partially convertible currency is currently trading at 66.77, weaker by 75 paise from its previous close of 66.02 on Monday. The currency has touched a high and low of 66.90 and 66.25 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 65.86 and for Euro it stood at 87.05 on August 02, 2013. While, the RBI’s reference rate for the Yen stood at 66.84, the reference rate for the Great Britain Pound (GBP) stood at 102.5189. The reference rates are based on 12 noon rates of a few select banks in Mumbai.
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