Rupee wipes off early losses; still ends weaker against dollar

India rupee wiped off its early losses, but still ended weaker against dollar on Wednesday due to increased demand for the American currency from importers, amid weak cues from Asian currency markets. Besides, dollar’s strength against some other currencies overseas also weighed on the rupee. However, gains in equity markets, which despite some choppiness managed a positive close capped some losses. Investors remained cautious with exporters body FIEO’s observation after exports fell for the 14th month in a row, that the country may end up with outbound shipments of $260 billion in 2015-16, sharply lower than the $310.5 billion mark achieved in the previous fiscal. On the global front, yen outperformed as a rebound in oil prices fizzled out, underpinning demand for the safe-haven Japanese currency.

Finally, the rupee ended at 68.47, 9 paise weaker from its previous close of 68.38 on Tuesday. The currency touched a high and low of 68.67 and 68.25 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 68.59 and for Euro stood at 76.61 on February 17, 2016. While the RBI’s reference rate for the Yen stood at 60.32, the reference rate for the Great Britain Pound (GBP) stood at 98.0180. The reference rates are based on 12 noon rates of a few select banks in Mumbai.