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Rupee snaps 2-day gaining streak as dollar advances
Aug-19-2019

Snapping its two-day winning streak, Indian rupee ended weaker against dollar on Monday, amid strong demand for the American currency from importers. Sentiments turned pessimistic as the Australia and New Zealand Banking Group (ANZ) slashed its forecast for India's economic growth to 6.2% in the financial year ending next March from a previous estimate of 6.5%, warning it would be tough for authorities to engineer a turnaround. Traders overlooked Fitch Solutions’ statement that the Reserve Bank of India (RBI) is expected to cut interest rates by 40 basis points before the end of the current financial year as monetary easing till now appears to be insufficient in boosting economic growth. Dollar’s strength against major global currencies overseas also weighed on the local unit. On the global front, Sterling fell back from a near three-week high against the euro on Monday but sentiment towards the pound was better than in recent sessions as investors hoped Britain and the European Union would make some progress in Brexit talks.

Finally, the rupee ended at 71.43, 29 paise weaker from its previous close of 71.14 on Friday. The currency touched a high and low of 71.48 and 71.05 respectively. The reference rate for the dollar stood at 71.28 and for Euro stood at 79.14 on August 16, 2019. While the reference rate for the Yen stood at 67.17, the reference rate for the Great Britain Pound (GBP) stood at 86.32.

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