Indian rupee appreciated against dollar on Tuesday, on increased selling of the American currency amid continued foreign inflows. Local currency got some support with the report that India’s oil consumption fell for the third straight month in March as the demand growth in diesel, petrol and other products came to a crawl. The oil demand fell by 0.65% in March to 17,358 thousand metric tonnes (TMT). Also, a strong domestic stock market coupled with dollar’s weakness against the basket of other major currencies supported the uptrend. Investors however maintained a cautious approach ahead of key economic data. The government will release data for Consumer Price Inflation for March and Index of Industrial Production for February on April 12. On the global front, dollar fell against yen on Tuesday, as concerns over tensions with North Korea and Syria weighed on U.S. Treasury yields and offset expectations of U.S. interest rate hikes.
Finally, the rupee ended at 64.50, 6 paise stronger from its previous close of 64.56 on Monday. The currency touched a high and low of 64.69 and 64.42 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 64.54 and for Euro stood at 68.30 on April 11, 2017. While the RBI’s reference rate for the Yen stood at 58.37, the reference rate for the Great Britain Pound (GBP) stood at 80.13. The reference rates are based on 12 noon rates of a few select banks in Mumbai.
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