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Rupee ends stronger on last trading session

17 Jun 2016 Evaluate

Indian rupee ended substantially stronger against dollar on Friday on heavy selling of the American currency by exporters and bankers on the back of lower trade deficit in the last fiscal. Investors got support with the report that India’s current account deficit narrowed sharply to $0.3 billion or 0.1 percent of GDP in the fourth quarter of FY 2015-16 ended March 31, 2016 from the $ 7.1 billion or 1.3 percent in the third quarter, mainly on account of lower trade deficit. Besides, weakness of the dollar against some other currencies overseas and gains in domestic equity market supported the rupee. On the global front, dollar slipped lower against the euro and held steady against the yen on Friday, as downbeat U.S. data, as well as the Federal Reserve and the Bank of Japan’s decision to leave monetary policies unchanged continued to weigh on the greenback.

Finally, the rupee ended 67.08, 20 paise stronger from its previous close at 67.28 on Thursday. The currency touched a high and low of 67.20 and 67.03 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 67.16 and for Euro stood at 75.45 on June 17, 2016. While the RBI’s reference rate for the Yen stood at 64.39, the reference rate for the Great Britain Pound (GBP) stood at 95.5535. The reference rates are based on 12 noon rates of a few select banks in Mumbai.

 

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