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Rupee ends stronger against dollar on Tuesday

01 Nov 2016 Evaluate

Indian rupee appreciated against dollar on Tuesday due to increased selling of American currency by exporters and banks. Sentiments remained upbeat with the report that manufacturing sector growth in India hit a 22-month high in October, driven by a sharp and accelerated increase in new orders, purchasing activity and output. The Nikkei Markit India Manufacturing Purchasing Managers' Index (PMI) - a gauge of manufacturing performance - rose to 54.4 in October from 52.1 in September, indicative of a robust improvement in manufacturing business conditions in the country. Some support also came with Core sector output rose to three months high by 5 per cent in September, compared to growth of 2.4 per cent in the year-ago period, on the back of a sustained growth in the steel sector and a rise in refinery products. On the global front, yen retreated from its early highs against dollar after the Bank of Japan kept its monetary stimulus unchanged as widely expected, although it delayed the timing of inflation forecast.

Finally, the rupee ended at 66.71, 6 paise stronger from its previous close of 66.77 on Friday. The currency touched a high and low of 66.76 and 66.67 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 66.71 and for Euro stood at 73.17 on November 01, 2016. While the RBI’s reference rate for the Yen stood at 63.68, the reference rate for the Great Britain Pound (GBP) stood at 81.55.The reference rates are based on 12 noon rates of a few select banks in Mumbai.

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