MY: Rupee surrenders early gains, ends weak on dollar demand
Indian rupee extending its weakness for the second day declined against dollar on Tuesday due to fresh demand for the greenback from importers and banks.Rupee looked strong in the beginning and was supported by the recovery in the local equity markets in late morning trade but lost its way at the end. Investors even overlooked the core sector data in which the growth in eight core sectors rose to 4-month high of 3.2 percent in September because of sharp pick-up in fertiliser production and electricity generation. On the global front, euro continued its slide against the US dollar after ECB President Mario Draghi hinted that the ECB's program of quantitative easing would likely continue through the year and possibly expand in December.
Finally, the rupee ended at 65.66, 7 paise weaker from its previous close of 65.59 on Monday. The currency touched a high and low of 65.71 and 65.40 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 65.45 and for Euro stood at 72.10 on November 03, 2015. While, the RBI’s reference rate for the Yen stood at 54.24 the reference rate for the Great Britain Pound (GBP) stood at 100.964. The reference rates are based on 12 noon rates of a few select banks in Mumbai.
