Rupee ends weaker against dollar

India Infoline News Service | Mumbai | October 17, 2016 17:09 IST

The rupee dropped after the American currency gained ground following a spurt in demand from importers, while the foreign institutional investors continued selling in debt markets.

The Indian rupee closed lower on Monday as the American currency gained ground following a spurt in demand from importers while the foreign institutional investors continued selling in debt markets. The fall in foreign exchange reserve also dampened the sentiment.

On the macro-front, India’s exports grew by 4.62% to $22.9 billion in September on the back of healthy growth in sectors such as engineering and gems and jewellery. Imports contracted by 2.54% to $31.22 billion, leaving a trade deficit of $8.33 billion in the month under review.

On internationsl front, Federal Reserve chairwoman Janet Yellen said there are “plausible ways” that running the US economy hot could fix damage caused by the Great Recession, laying out the argument for keeping monetary policy easy without taking an interest rate hike off the table this year.

Besides, the dollar’s strength against some other currencies overseas on the prospects of higher US rates also weighed on the rupee.

The Indian currency ended weaker by 18 paise at 66.88/$. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 66.77 and for the Euro stood at 73.36. The RBI’s reference rate for the Yen stood at 64.12; reference rate for the Great Britain Pound (GBP) stood at 81.3088.
 

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