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Rupee ends lower on importer dollar demand
Feb-13-2019

Erasing all of the initial gains, Indian rupee ended weaker against dollar on Wednesday, due to fresh demand for the American currency from banks and importers.  The rupee’s losses were also caused by late hour sell-off in domestic equity market. However, losses were limited as traders found some support with positive macro-economic data. India’s industrial growth measured by IIP inched up to 2.4% in the month of December 2018, after hitting a 17-month low in November, while retail inflation based on CPI continued its southward journey for another month and eased further to 2.05% in the month of January 2019, the lowest in the last 19 months.  On the global front, dollar edged lower versus its peers on Wednesday, as rising hopes of a breakthrough in US-China trade talks led investors to put money into the euro and Asian currencies.

Finally, the rupee ended at 70.80, 10 paise weaker from its previous close of 70.70 on Tuesday. The currency touched a high and low of 71.86 and 71.40 respectively. The reference rate for the dollar stood at 70.55 and for Euro stood at 79.95 on February 13, 2019. While the reference rate for the Yen stood at 63.78, the reference rate for the Great Britain Pound (GBP) stood at 91.13.

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