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Rupee strengthens on increased selling of American currency by exporters and banks

01 Jun 2017 Evaluate

Indian rupee strengthened against the US dollar on Thursday on increased selling of the American currency by exporters and banks even as India’s economic growth slowed to 7.1 per cent in 2016-17. The Gross Domestic Product (GDP) growth was 6.1 per in the January-March quarter, the immediate three months after the demonetisation was affected on November 9, 2016. Further, dollar’s weakness against some currencies overseas too supported the rupee. On the global front, the Australian dollar tumbled on Thursday after a private survey showed China's manufacturing activity unexpectedly shrank in May, casting a cloud over the global economic outlook. The Caixin/Markit Manufacturing Purchasing Managers' index (PMI) fell to 49.6, indicating a contraction for the first time in 11 months and coming in below market expectations.

The partially convertible currency is currently trading at 64.43, stronger by 8 paise from its previous close of 64.51 on Wednesday. The currency touched a high and low of 64.4900 and 64.4250 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 64.54 and for Euro stood at 72.14 on May 31, 2017. While the RBI’s reference rate for the Yen stood at 58.15, the reference rate for the Great Britain Pound (GBP) stood at 82.64. The reference rates are based on 12 noon rates of a few select banks in Mumbai.

Date1US$1GBP
May 31, 201764.545982.6446
May 30, 201764.633682.7892

(RBI-Reference Rate)

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