Extending its gains for second consecutive session, Indian rupee ended substantially stronger against dollar on Wednesday due to increased selling of American currency by exporters. Besides, gains in local equity markets also supported the rupee. Sentiment remained upbeat as India’s trade deficit narrowed to a five-year low of $5.07 billion in March. Further, a fall in the dollar against major world currencies globally after data showed new US home construction slumped in March to the lowest pace since October strengthened the case for the Federal Reserve to go slow in raising interest rates too helped the domestic currency. On the global front, yen rose on Wednesday as a drop in oil prices soured market sentiment, however, euro was flat ahead of the upcoming European Central Bank meeting on Thursday.
Finally, the rupee ended at 66.22, 33 paise stronger from its previous close of 66.55 on Monday. The currency touched a high and low of 66.34 and 66.10 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 66.24 and for Euro stood at 75.27 on April 20, 2016. While the RBI’s reference rate for the Yen stood at 60.82, the reference rate for the Great Britain Pound (GBP) stood at 95.2076. The reference rates are based on 12 noon rates of a few select banks in Mumbai.
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