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Rupee strengthens tracking equity gains after RS passes GST Bill

04 Aug 2016 Evaluate

Indian rupee strengthened against the US dollar in morning trade on Thursday, tracking the gains in the local equity markets after the Rajya Sabha yesterday passed a Bill to facilitate rollout of the historic GST. In the biggest tax reform since Independence, the national sales tax or GST Bill was approved by the Rajya Sabha to replace a raft of different state and local taxes with a single unified value-added tax system to turn the country into world’s biggest single market. Besides, dollar's weakness against some other currencies overseas, fresh selling of the US currency by exporters and banks supported the rupee sentiment. On the global front, the dollar held steady above a recent six-week low on Thursday, while sterling stayed in a tight range with expectations running high that the Bank of England will cut interest rates for the first time since 2009 in a bid to ward off recession.

The partially convertible currency is currently trading at 66.94, stronger by 5 paise from its previous close of 66.99 on Wednesday. The currency touched a high and low of 66.9925 and 66.87 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 66.94 and for Euro stood at 74.99 on August 3, 2016. While, the RBI’s reference rate for the Yen stood at 66.26, the reference rate for the Great Britain Pound (GBP) stood at 89.01. The reference rates are based on 12 noon rates of a few select banks in Mumbai.

Date1US$1GBP
August 03, 201666.936889.0126
August 02, 201666.761288.0313
(RBI-Reference Rate)

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