Rupee weakens against dollar in early deals on Monday

Indian rupee weakened against the US dollar in early trade on Monday due to continued demand for the American currency from banks and importers. Besides, the US dollar's gain against other currencies overseas too put pressure on the rupee. Moreover, rupee weakened further on concerns that the delay of monsoon and weak macroeconomic data could dampen the prospects of further rate cuts by the Reserve Bank of India (RBI). However, a higher opening of the domestic equity market, capped the rupee's losses. On the global front, the yen reversed course and eased versus the dollar on Monday, after rising initially as disappointing economic news out of China shored up demand for the safe-haven currency.

The partially convertible currency is currently trading at 66.86, weaker by 9 paise from its previous close of 66.77 on Friday. The currency touched a high and low of 66.90 and 66.8050 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 66.76 and for Euro stood at 75.72 on May 13, 2016. While the RBI’s reference rate for the Yen stood at 61.47, the reference rate for the Great Britain Pound (GBP) stood at 96.1557. The reference rates are based on 12 noon rates of a few select banks in Mumbai.

(RBI-Reference Rate)