Rupee weakens on higher demand for dollar from importers

Indian rupee weakened against dollar in early deals on Tuesday due to higher demand for the dollar from importers amid a lower opening in the domestic equity market. Besides, strengthening of dollar overseas after Atlanta Fed President Dennis Lockhart said that the US may be in line for an interest rate hike as soon as April, too added pressure on rupee. Indian markets are closed on 24 March on account of Holi festival. Markets across the world will be shut on 25 March for Good Friday.

The partially convertible currency is currently trading at 66.55, weaker by 2 paise from its previous close of 66.53 on Monday. The currency touched a high and low of 66.6450 and 66.5275 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 66.50 and for Euro stood at 74.91 on March 21, 2016. While the RBI’s reference rate for the Yen stood at 59.66, the reference rate for the Great Britain Pound (GBP) stood at 95.8722. The reference rates are based on 12 noon rates of a few select banks in Mumbai.

(RBI-Reference Rate)