Indian rupee extended its gains for four consecutive sessions against dollar on Wednesday, on sustained bouts of dollar selling from banks and exporters. The domestic currency was looking strong from the very beginning and was also supported by the smart rally in the equity markets on speculation the government’s pledge to narrow the fiscal deficit will pave the way for interest-rate cuts. Sentiments got further boosted after Finance Minister Arun Jaitley’s statement that the India stands out as a haven of stability amid a weak economic environment globally and promised steps to sustain growth. On the global front, dollar traded at around a one-month high against a basket of major currencies on Wednesday, as investors got solace with the encouraging U.S. economic data which bet that the Federal Reserve may hike interest rates this year.
Finally, the rupee ended at 67.54, 33 paise stronger from its previous close of 67.87 on Tuesday. The currency touched a high and low of 67.76 and 67.53 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 67.70 and for Euro stood at 73.53 on March 02, 2016. While the RBI’s reference rate for the Yen stood at 59.42, the reference rate for the Great Britain Pound (GBP) stood at 94.6003. The reference rates are based on 12 noon rates of a few select banks in Mumbai.
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