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Rupee ends stronger on Friday on dollar selling

10 Mar 2017 Evaluate

Indian rupee appreciated against dollar on Friday, due to selling of greenback by banks and exporters. Investors got some comfort with the report that the government's revenue collection from indirect tax during April-February grew by an impressive 22.2%, while that of direct tax rose by 10.7%. Total direct and indirect tax collections at February end stood at Rs 13.89 lakh crore, 81.5% of the target of Rs 16.99 lakh crore, as per the revised estimate for 2016-17. However, gains remained capped with rating agency ICRA’s statement that higher oil and gold imports will end the four-year trend of moderation in the current account deficit (CAD) in 2017-18, and the gap will widen to $ 30 billion or 1.2 percent of the GDP. Also, dollar strengthened against some currencies overseas weighed on rupee sentiments. On the global front, dollar rose to seven-week highs against yen on Friday, as investors awaited U.S. jobs data that is likely to cement expectations of a Federal Reserve interest rate hike next week.

Finally, the rupee ended at 66.59, 12 paise stronger from its previous close of 66.71 on Thursday. The currency touched a high and low of 66.72 and 66.55 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 66.68 and for Euro stood at 70.64 on March 10, 2017. While the RBI’s reference rate for the Yen stood at 57.79, the reference rate for the Great Britain Pound (GBP) stood at 81.05.The reference rates are based on 12 noon rates of a few select banks in Mumbai.

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