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Rupee ends sharply lower against dollar
Dec-06-2018

Indian rupee ended lower against US dollar on Thursday amid strengthening of American currency and weakness in domestic equity markets. Traders got anxious with Fitch Ratings revising downwards India’s GDP growth forecast to 7.2 per cent for current fiscal citing higher financing cost and reduced credit availability. In its Global Economic Outlook, Fitch projected that for 2019-20 and 2020-21 financial years, India's GDP growth will be 7 per cent and 7.1 per cent respectively. The rating agency has also forecasted Indian rupee to weaken to 75 to a dollar by end of 2019. Traders failed to get any sense of relief with Finance Minister Arun Jaitley’s statement that India, among the world's fastest growing emerging economies, is likely to maintain the ‘high growth rate’ of 7-8 per cent over the next decade. He emphasized that landmark reforms such as the Insolvency and Bankruptcy Code offer an attractive and conducive environment to foreign investors to the country.

Finally, the rupee ended at 70.90, 44 paise weaker from its previous close of 70.46 on Wednesday. The currency touched a high and low of 71.41 and 70.75 respectively. The reference rate for the dollar stood at 71.03 and for Euro stood at 80.54 on December 06, 2018. While the reference rate for the Yen stood at 62.99, the reference rate for the Great Britain Pound (GBP) stood at 90.29.

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