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Rupee ends considerably stronger on Thursday

16 Mar 2017 Evaluate

Continuing its uptrend for the fourth straight session, Indian rupee ended considerably stronger against dollar on Thursday due to sustained selling of the US currency by exporters and banks. Traders took some encouragement with the report that India's merchandise exports expanded for the sixth consecutive month in February. Exports grew by 17.48 percent to $24490.27 million in February 2017, on the back of a jump in the value of shipments of engineering goods and petroleum products. Besides, the trade deficit widened to $8896.30 million in February as against $6573.25 million in February 2016. Moreover, good going in the local equity markets and dollar’s weakness overseas against a basket of major currencies, mainly aided the currency’s appreciation. On the global front, yen strengthened against dollar after the Bank of Japan kept its monetary stimulus unchanged as widely expected.

Finally, the rupee ended at 65.41, 28 paise stronger from its previous close of 65.69 on Wednesday. The currency touched a high and low of 65.51 and 65.22 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 65.38 and for Euro stood at 70.18 on March 16, 2017. While the RBI’s reference rate for the Yen stood at 57.73, the reference rate for the Great Britain Pound (GBP) stood at 80.26.The reference rates are based on 12 noon rates of a few select banks in Mumbai.

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