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Rupee ends marginally lower against dollar
Dec-04-2018

In line with a minor fall in local equities, Indian rupee ended marginally weaker against the American currency on Tuesday, due to fresh dollar demand from banks and importers. Traders remained concerned with Crisil cutting India’s growth forecast for current fiscal to 7.4% on the back of weakening GDP growth and lower global trade forecasts. India’s growth in the July-September quarter slipped to 7.1% from 8.2% in the April-June quarter. It added that India’s export, which saw a revival in early part of 2018, could likely see a slower growth. Some cautiousness also came with ICRA’s statement that India’s current account deficit is likely to rise to 3% of GDP in the July-September quarter of current fiscal, from 2.4% in the preceding quarter, driven mainly by high crude oil prices. On the global front, dollar weakened in Asia on Tuesday as US Treasury yields fell to three-month lows, with investors fretting over a possible pause in the Federal Reserve's rate-hike cycle and portents of recession seen in a yield curve inversion.

Finally, the rupee ended at 70.49, 4 paise weaker from its previous close of 70.46 on Monday. The currency touched a high and low of 70.68 and 70.33 respectively. The reference rate for the dollar stood at 70.34 and for Euro stood at 80.07 on December 04, 2018. While the reference rate for the Yen stood at 62.21, the reference rate for the Great Britain Pound (GBP) stood at 89.64. The reference rates are based on 12 noon rates of a few select banks in Mumbai.

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