Rupee weakens against dollar in early deals on Tuesday

Indian rupee weakened against dollar in early deals on Tuesday on bouts of dollar demand from banks and importers. However, weakness in the dollar against other currencies overseas and a higher opening in the domestic equity market, capped some losses. Meanwhile, in line with expectations, RBI governor Raghuram Rajan kept both repo rate and cash reserve ratio (CRR) unchanged. On the global front, the yen remained in the doldrums on Tuesday after a restless session overnight, while the Australian dollar held firm as investors bet the Reserve Bank of Australia will resist the recent trend for surprise policy easings.

The partially convertible currency is currently trading at 67.94, weaker by 10 paise from its previous close of 67.84 on Monday. The currency touched a high and low of 67.9750 and 67.7725 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 67.67 and for Euro stood at 73.41 on February 01, 2016. While the RBI’s reference rate for the Yen stood at 55.78, the reference rate for the Great Britain Pound (GBP) stood at 96.5149. The reference rates are based on 12 noon rates of a few select banks in Mumbai.   

(RBI-Reference Rate)