Rupee weakens on increased demand for American currency from banks and importers

Indian rupee weakened against the US dollar in morning trade on Friday following increased demand for the American currency from banks and importers. Besides, the US dollar's gain against some currencies overseas put the rupee on the back foot. Moreover, traders remained cautious ahead of the announcement of a new governor for the Reserve Bank of India (RBI) expected anytime now. On the global front, the dollar wallowed close to eight-week lows against the euro in Asian trade on Friday, poised for weekly losses, after minutes of the US Federal Reserve's July meeting revealed central bank policymakers were in no hurry to hike rates.

The partially convertible currency is currently trading at 66.93, weaker by 12 paise from its previous close of 66.81 on Thursday. The currency touched a high and low of 66.9650 and 66.9075 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 66.79 and for Euro stood at 75.58 on August 18, 2016. While the RBI’s reference rate for the Yen stood at 66.84, the reference rate for the Great Britain Pound (GBP) stood at 87.26.The reference rates are based on 12 noon rates of a few select banks in Mumbai.

(RBI-Reference Rate)