Rupee weakens on appreciation of US currency overseas

Indian rupee weakened against dollar in early deals on Wednesday due to appreciation of the US currency overseas. Further, sustained demand for the dollar from importers, and losses in the local equity and Asian currencies market too weighed on rupee. Traders are cautious ahead of the ECB meets on Thursday and there is expectation of further action from the ECB especially since the inflation data was weaker than expectations. On the global front, the yen was broadly firmer early on Wednesday as demand for the safe-haven currency picked up after disappointing Chinese trade data took the wind out of a global rally rooted in stronger risk appetites.

The partially convertible currency is currently trading at 67.46, weaker by 12 paise from its previous close of 67.34 on Tuesday. The currency touched a high and low of 67.5125 and 67.4350 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 67.33 and for Euro stood at 74.19 on March 08, 2016. While the RBI’s reference rate for the Yen stood at 59.59, the reference rate for the Great Britain Pound (GBP) stood at 95.9028. The reference rates are based on 12 noon rates of a few select banks in Mumbai.