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Rupee ends flat against dollar on Friday

01 Jan 2016 Evaluate

Rupee ended flat against dollar on Friday owing to mild dollar demand from banks and importers. Sentiments of the domestic currency were hit by weak trade in local equity market which despite some choppiness managed a positive close, but rupee failed to take the advantage. Dollar's gain overnight against major world currencies also influenced the rupee movement. Investors remained concerned with report that India’s external debt rose 1.7% to $483.2 billion at the end of September from the level in March due to long-term liabilities, especially commercial borrowings and non-resident Indian deposits. On the global front, dollar was higher against a basket of currencies, despite a small decline in December, with portfolio rebalancing from asset managers leading the currency higher in thin trading.

Finally, the rupee ended flat at its previous close of 66.14 on Thursday. The currency touched a high and low of 66.35 and 66.13 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 66.17 and for Euro stood at 71.86 on January 01, 2016. While, the RBI’s reference rate for the Yen stood at 55.01 the reference rate for the Great Britain Pound (GBP) stood at 97.6059. The reference rates are based on 12 noon rates of a few select banks in Mumbai. 

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