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Rupee ends stronger as RBI maintains status quo on policy rates

01 Dec 2015 Evaluate

Indian rupee ended stronger against dollar on the back of increased selling of American currency by banks and exporters. Besides, a smart rally in local equity market also supported the rupee. Sentiment got a boost after India’s economy grew by 7.4% in the second quarter (July-September), outpacing China to become the fastest growing major economy. Meanwhile, Reserve Bank of India (RBI), has kept its key repo lending rate unchanged at 6.75 per cent after consumer inflation picked up to a four-month high and as emerging markets brace for a US rate hike. On the global front, dollar slipped lower against the yen and the euro on Tuesday, but it remained broadly supported by growing expectations for a rate hike by the Federal Reserve in December rate hike.

Finally, the rupee ended at 66.49, 17 paise stronger from its previous close of 66.66 on Monday. The currency touched a high and low of 66.59 and 66.43 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 66.51 and for Euro stood at 70.43 on December 01, 2015. While, the RBI’s reference rate for the Yen stood at 54.13 the reference rate for the Great Britain Pound (GBP) stood at 100.4355. The reference rates are based on 12 noon rates of a few select banks in Mumbai.

 

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