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Rupee ends one-week high against US dollar

23 Dec 2016 Evaluate

Indian rupee ended one-week high against US dollar on the last trading day of the week due to selling of the American currency by banks and exporters. Sentiments also got some support with Union Minister for Statistics and Programme Implementation D. V. Sadananda Gowda’s statement that demonetisation could bring down the growth rate by just 0.2 percent and not more than that. He added that India’s GDP stood at 7.6 percent and it may go down to 7.4 percent. Traders also took some encouragement with some signs of thaw appearing on the GST issue, and the prospects of early roll out of goods and services tax (GST) brightening with the states and the Centre making progress on a crucial legislation, amid indications that the states may get concessions to tide over possible demonetisation-related revenue loss. Besides, dollar weakness against other currencies overseas coupled with some gains in the domestic equity market too supported the local currency. On the global front, the dollar was on the lower side in the light trading ahead of the Christmas break.

Finally, the rupee ended at 67.81, 18 paise stronger from its previous close of 67.99 on Thursday. The currency touched a high and low of 67.94 and 67.77 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 67.91and for Euro stood at 70.94 on December 23, 2016. While the RBI’s reference rate for the Yen stood at 57.88, the reference rate for the Great Britain Pound (GBP) stood at 83.48.The reference rates are based on 12 noon rates of a few select banks in Mumbai.

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