Rupee depreciates substantially past psychological 67/$ level

Extending its weakness for the sixth straight session, Indian rupee depreciated substantially against dollar on Thursday on strong demand for the American unit from importers and banks, tracking the losses in the Asian currencies markets. Besides, massive losses in the local equity market and appreciation of the American currency overseas too pressurized the domestic currency. Investors even failed to draw any sense of relief with global rating agency Standard and Poor’s (S&P) statement that India is likely to remain insulated from the developments in the Chinese economy provided the government carries out structural reforms to take the economy to an eight per cent growth path. On the global front, dollar was higher on Thursday after a perceived increase in chances of a rise in U.S. interest rates by September drove its biggest daily gain against euro in five weeks.

Finally, the rupee ended at 67.36, 38 paise weaker from its previous close at 66.98 on Wednesday. The currency touched a high and low of 67.39 and 67.13 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 67.23 and for Euro stood at 75.45 on May 19, 2016. While the RBI’s reference rate for the Yen stood at 61.01, the reference rate for the Great Britain Pound (GBP) stood at 98.0493. The reference rates are based on 12 noon rates of a few select banks in Mumbai.