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Rupee strengthens on fresh selling of US currency by banks and exporters

03 Jan 2017 Evaluate

Indian rupee strengthened against the dollar on Tuesday on fresh selling of the US currency by banks and exporters. Besides, dollar's weakness against other currencies overseas too supported the rupee. Meanwhile, domestic equity markets are opened on a flat note with data showing a contraction in India's manufacturing activity in December hurting sentiment. The Nikkei India Manufacturing Purchasing Managers’ Index (PMI) fell to 49.6 in December. That was down from 52.3 in November, and it fell beneath the boom-or-bust line of 50 that separates expansion from contraction. Output and new orders fell for the first time in a year, while companies reduced buying levels and payroll numbers. Input cost inflation accelerated while charges rose at a softer rate. For the fourth quarter, the PMI score was 52.1, down marginally from 52.2 in the third quarter. On the global front, the US dollar held firm on Tuesday as the prospect of raising US interest rates this year kept sentiment bullish, while a surprisingly upbeat reading on Chinese manufacturing gave the Aussie dollar a lift.

The partially convertible currency is currently trading at 68.07, stronger by 16 paise from its previous close of 68.23 on Monday. The currency touched a high and low of 68.1325 and 68.0525 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 68.02 and for Euro stood at 71.51 on January 2, 2017. While the RBI’s reference rate for the Yen stood at 58.19, the reference rate for the Great Britain Pound (GBP) stood at 83.96.The reference rates are based on 12 noon rates of a few select banks in Mumbai.

Date1US$1GBP
January 02, 201768.022583.9670
December 30, 201667.954783.4212
(RBI-Reference Rate)

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