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Rupee extends weakness for second straight session
Oct-15-2019

Extending weakness for the second day, Indian rupee ended lower against dollar on Tuesday, as good demand for the greenback from importers. Traders remain concerned with a data released by the Central Statistics Office (CSO) showing that India's retail inflation rate grew 3.99% in September which is very close to the Reserve Bank of India's (RBI) target level of 4%. The retail inflation for August was 3.21%. Cautiousness also crept in with former RBI Governor Raghuram Rajan expressed concern over India's fiscal deficit figures, stating that it is the likely reason behind the slowdown in Indian economy. He also criticised the government over its populist decision-making which failed to focus on economic growth. Dollar weakened against some currencies overseas coupled with strong gains in the local equity market failed to cast any impact on the rupee. On the global front, dollar slipped against its rivals on Tuesday as optimism over trade negotiations between the world's two largest economies and for an orderly British exit from the European Union started to fade.

Finally, the rupee ended at 71.54, 31 paise weaker from its previous close of 71.23 on Monday. The currency touched a high and low of 71.57 and 71.22 respectively. The reference rate for the dollar stood at 71.01 and for Euro stood at 78.29 on October 14, 2019. While the reference rate for the Yen stood at 65.61, the reference rate for the Great Britain Pound (GBP) stood at 89.28.

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