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Rupee depriciated for second consecutive session on Tuesday
Aug-20-2019

Indian rupee ended weaken for second consecutive session on Tuesday against the US dollar, due to rising crude oil prices along with strength in the dollar overseas. Market participants remained worried with report that former Reserve Bank of India (RBI) Governor Raghuram Rajan called slowdown in the economy very worrisome and said the government needs to fix the immediate problems in power and non-bank financial sectors and come out with a new set of reforms to energise private sector to invest. Traders took note of RBI governor Shaktikanta Das’ statement that the central bank is looking to formalise policies to link loan rates to an external benchmark like the repo so as to speed up transmission. On the global front, private report stateed that the euro hovered around a two-week low versus the dollar as the U.S. currency held strong on Tuesday, boosted by slightly higher Treasury yields, while political uncertainties in Italy also kept the common currency subdued.

Finally, the rupee ended at 71.71, 28 paise weaker from its previous close of 71.43 on Monday. The currency touched a high and low of 71.80 and 71.53 respectively. The reference rate for the dollar stood at 71.34 and for Euro stood at 79.13 on August 19, 2019. While the reference rate for the Yen stood at 67.50, the reference rate for the Great Britain Pound (GBP) stood at 86.80.

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