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Rupee ends stronger despite equity fall

14 Dec 2016 Evaluate

Snapping its two-days losing streak, Indian rupee bounced back against greenback on Wednesday due to increased selling of the American currency by exporters and banks. Traders got some support with positive economic data that retail inflation fell to a two-year low in November due to the ongoing cash crunch following the demonetization drive, while the country’s current account deficit (CAD) narrowed by more than a percentage point to 0.6 percent of GDP at $ 3.4 billion in the July-September, on account of lower trade deficit. Moreover, Wholesale Price Index (WPI) inflation continued its easing trend for the third straight month in November, falling to 3.15 per cent. However, investors awaited the outcome of the U.S. Federal Reserve meet wherein the interest rate policy of the world’s largest economy will be decided.

Finally, the rupee ended at 67.44, 10 paise stronger from its previous close of 67.54 on Tuesday. The currency touched a high and low of 67.58 and 67.43 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 67.56 and for Euro stood at 71.91on December 14, 2016. While the RBI’s reference rate for the Yen stood at 58.66, the reference rate for the Great Britain Pound (GBP) stood at 85.54.The reference rates are based on 12 noon rates of a few select banks in Mumbai.             


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