Rupee closes weaker against US dollar at 68.76

India Infoline News Service | Mumbai | November 28, 2016 17:06 IST

The Indian Rupee closed lower by 30 paise at 68.76/$ on Monday. The local unit hit a high of 68.42/$ and a low of 68.71/$ today.

Rupee currency symbol exploding
The rupee closed lower at the Interbank Foreign Exchange market on month-end demand for the American currency from importers. Also, weak domestic equity market also weighed on the rupee but the dollar’s weakness against some currencies overseas capped the fall. Traders are also cautious ahead of the key gross domestic product data which will be released on November 30.

India’s foreign exchange reserves dipped for the second consecutive by $1.542 billion to $365.5 billion in the week ended November 18, the Reserve Bank of India said. The country’s forex reserves had gone down by $1.19 billion to $367.04 billion in the previous week.

In a surprise move, RBI ordered banks to maintain incremental CRR (cash reserve ratio) of 100% on the increase in NDTL (net demand and time liabilities) between September 16, 2016 and November 11, 2016 from the fortnight beginning November 26, 2016. This action is estimated to suck out around Rs 3-3.5tn of surplus liquidity from the banking system.

US dollar index witnessed sharp retracement, with values retreating from the high of 102 and now trading slightly above 100.5. We sense that the recent softness in the greenback will be short-lived, as market focus is clearly  accentuated on the forthcoming US FOMC policy meeting on December 14, wherein the expectations call for a certain rate hike.

The Indian Rupee closed lower by 30 paise at 68.76/$ on Monday. The local unit hit a high of 68.42/$ and a low of 68.71/$ today.

The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 68.72 while for the Euro it was 72.17. The RBI’s reference rate for the Yen stood at 61.32; reference rate for the Great Britain Pound (GBP) stood at 85.8494.
 

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