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

Indian rupee weakened against the US dollar on Friday on increased demand for the American currency from importers and banks. Besides, lower opening in the domestic equity market on cautious trading by the participants ahead of July IIP data due to be released later today also weighed on the domestic currency. On the global front, the dollar bumped down from its overnight highs in early Asian trade on Friday, on track for weekly losses in a week marked by continuing uncertainty about US monetary policy, while the euro firmed after the European Central Bank stood pat.

The partially convertible currency is currently trading at 66.54, weaker by 11 paise from its previous close of 66.43 on Thursday. The currency touched a high and low of 66.5625 and 66.5275 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 66.44 and for Euro stood at 74.77 on September 8, 2016. While the RBI’s reference rate for the Yen stood at 65.33, the reference rate for the Great Britain Pound (GBP) stood at 88.61.The reference rates are based on 12 noon rates of a few select banks in Mumbai.