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Rupee ends stronger on Friday; macroeconomic data eyed

12 May 2017 Evaluate

Appreciating for second consecutive sessions, Indian rupee ended stronger on Friday ahead of key economic data, i.e. March IIP and April CPI data, scheduled to be released later in the day. Local currency got some support with SBI Research’s Ecowrap report, which said that the easing of crude oil prices will have positive effect not only on inflation but also on GDP growth. It has said that average crude oil prices will be around $ 45 for the next half of this year and this, coupled with positive macro fundamentals, could translate into better growth numbers for the country. However, dollar held strong against other currencies overseas along with weak trade in domestic equity market kept pressure on the local currency. On the global front, dollar traded near a three-week high on Friday, on track for its strongest week this year, as robust producer price and labour market data bolstered expectations that the Federal Reserve will raise US interest rates again in June.

Finally, the rupee ended at 64.31, 6 paise stronger from its previous close of 64.37 on Thursday. The currency touched a high and low of 64.37 and 64.26 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 64.30 and for Euro stood at 69.88 on May 12, 2017. While the RBI’s reference rate for the Yen stood at 56.56, the reference rate for the Great Britain Pound (GBP) stood at 82.86. The reference rates are based on 12 noon rates of a few select banks in Mumbai.

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