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Rupee snaps four consecutive sessions’ depreciating streak to strengthen to five week high on Wednesday

03 Sep 2014 Evaluate

Indian rupee, snapping four consecutive sessions’ depreciating streak, strengthened to five week high level on Wednesday, tracing weakness of dollar against other major currencies after Ukraine said it has agreed on a ceasefire with Russia, which sharpened the appeal of emerging markets’ assets. Additionally, RBI’s intervention too is speculated to provide some strength to the local unit, which also appreciated tailing the record close of local equities for yet another session. Meanwhile, dismal macro-economic data, which suggested of Service PMI data expanding at its weakest rate in three months in August as firms' order books filled up at a slower pace, leading to HSBC Services Purchasing Managers' Index (PMI), compiled by Markit, falling to 50.6 in August from 52.2 in July, failed to caste any impact on the local currency. On the global front, euro climbed against almost every major currency on Wednesday on speculation of a possible ceasefire in eastern Ukraine, offering some comfort to the euro zone economy, which has borne the brunt of the impact of the conflict.

Finally the rupee ended at 60.48, stronger by 21 paise from its previous close of 60.69 on Tuesday. The currency touched a high and low of 60.69 and 60.33 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 60.54 and for Euro stood at 79.54 on September 3, 2014. While, the RBI’s reference rate for the Yen stood at 57.71, the reference rate for the Great Britain Pound (GBP) stood at 99.7289. The reference rates are based on 12 noon rates of a few select banks in Mumbai.

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