Snapping two days losing streak, Indian rupee appreciated against dollar on Wednesday due to increased selling of American currency by exporters and banks. Investors took encouragement with India Meteorological Department’s (IMD’s) statement that India will get normal rainfall this monsoon season, somewhat allaying fears that an El Nino phenomenon may disrupt the weather system that’s the lifeline for the country’s rural economy. The June-September monsoon rainfall this year is expected to be 96% of the long-term average with a 5% error margin bringing relief to millions of farmers in the country. Some support also came with report that India has jumped one spot to 8th rank in the 2017 on Global FDI Confidence Index. Governance and regulatory issues made up 7 of the top-10 factors that investors consider when deciding on an investment destination according to the report. On the global front, dollar pulled away from five-month lows versus yen on Tuesday, with comments from U.S. Treasury Secretary Steven Mnuchin and higher debt yields giving the bruised greenback some breathing space.
Finally, the rupee ended at 64.57, 6 paise stronger from its previous close of 64.63 on Tuesday. The currency touched a high and low of 64.62 and 64.50 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 64.54 and for Euro stood at 69.19 on April 19, 2017. While the RBI’s reference rate for the Yen stood at 59.39, the reference rate for the Great Britain Pound (GBP) stood at 82.74. The reference rates are based on 12 noon rates of a few select banks in Mumbai.
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