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Rupee appreciates for second straight session on incremental dollar sales

19 Jan 2015 Evaluate

Indian rupee appreciated for second consecutive session on Monday on incremental dollar selling by exporters, while gains of local equities also influenced the sentiment. Meanwhile, exchange data which showed that global funds purchased $1.3 billion more rupee-denominated sovereign and corporate debt than they sold last week through January 15, which took inflows to this month to $1.8 billion, also added to upbeat environment. However, a strong dollar overseas after Switzerland's unexpected move to lift its currency restriction, capped the rupee's gains. On the global front, euro edged up against the dollar on Monday but was still close to an 11-year low as investors braced for the European Central Bank to take its boldest steps yet to combat deflation and revive the euro zone's moribund economy.

Finally the rupee ended at 61.70, stronger by 17 paise from its previous close of 61.87 on Friday. The currency touched a high and low of 61.79 and 61.58 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 61.69 and for Euro stood at 71.33 on January 19, 2015. While, the RBI’s reference rate for the Yen stood at 52.68, the reference rate for the Great Britain Pound (GBP) stood at 93.4123. The reference rates are based on 12 noon rates of a few select banks in Mumbai.

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