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Rupee ends marginally stronger ahead of macro-economic data

12 Jul 2016 Evaluate

Indian rupee ended marginally stronger against dollar ahead of the key macroeconomic data, scheduled to be released later in the day. The government will issue the Index of Industrial Production (IIP) and Consumer Price Index (CPI) based inflation data for May and June. Besides, strong gains in the domestic equity market and dollar weakness against other currencies overseas added to the rupee gains. Sentiments got some support with global ratings agency Crisil report that India’s economy will grow at 7.9 percent in the current financial year compared with 7.6 percent in fiscal 2016, if the country receives normal monsoon, it will boost agriculture growth and lift rural demand. On the global front, the yen hit its lowest in nearly three weeks against the dollar on Tuesday, as a weekend election victory by Japan's ruling coalition paved the way for more stimulus, bolster risk sentiment.

Finally, the rupee ended 67.18, 5 paise stronger from its previous close at 67.13 on Monday. The currency touched a high and low of 67.19 and 67.10 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 67.14 and for Euro stood at 74.44 on July 12, 2016. While the RBI’s reference rate for the Yen stood at 64.94, the reference rate for the Great Britain Pound (GBP) stood at 87.8620.The reference rates are based on 12 noon rates of a few select banks in Mumbai.

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