Indian rupee ended marginally stronger against the US dollar on Tuesday on fresh selling of American currency by banks and exporters. Investors remained cautious ahead of GDP data scheduled to be released later in the day. According to private report, the second official estimate of GDP growth is likely to show the economy expanded below 7% in FY17, tripped by the November 8 demonetisation that dented the consumption demand. However, local currency got some support with Finance Minister Arun Jaitley’s statement that India has potential to grow faster and plans are underway to reduce poverty and create jobs in rural areas. On the global front, Sterling traded close to a two-week low against dollar on Tuesday, as investors awaited a speech by U.S. President Donald Trump, with the pound kept under pressure by worries about the future of Britain as it leaves the European Union (EU).
Finally, the rupee ended at 66.69, 1 paise stronger from its previous close of 66.70 on Monday. The currency touched a high and low of 66.81 and 66.69 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 66.73 and for Euro stood at 70.71 on February 28, 2017. While the RBI’s reference rate for the Yen stood at 59.35, the reference rate for the Great Britain Pound (GBP) stood at 83.05.The reference rates are based on 12 noon rates of a few select banks in Mumbai.
