Indian rupee, although surrendered some its early gains, yet ended stronger against dollar on Thursday tailing massive gains of local equities after Reserve Bank of India, in a big surprise, cut repo rate by 25 basis points to 7.75% with immediate effect, ahead of its policy review on February 3, 2015 and also as India’s central bank signaled it could cut further, amid signs of cooling inflation and government commitment to contain the fiscal deficit. Besides, dollar sales by exporters and corporate amidst sustained capital inflows also added to the positive milieu. On the global front, dollar nursed losses early on Thursday, having retreated across the board after a surprisingly big fall in U.S. retail sales pulled U.S. yields sharply lower.
Finally the rupee ended at 62.06, stronger by 13 paise from its previous close of 62.19 on Wednesday. The currency touched a high and low of 62.19 and 61.35 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 61.75 and for Euro stood at 72.63 on January 15, 2015. While, the RBI’s reference rate for the Yen stood at 52.40, the reference rate for the Great Britain Pound (GBP) stood at 94.0154. The reference rates are based on 12 noon rates of a few select banks in Mumbai.
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