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Rupee ends stronger against dollar on rate cut hopes

13 Jul 2017 Evaluate

Indian rupee ended stronger against dollar for the second straight day on Thursday, on increased selling of the US currency by exporters and banks. Traders remained optimistic as sluggish inflation and industrial output numbers bolstered hopes of a rate cut in August. With a sustained dip in food prices, India’s retail inflation hit a record low of 1.54% in June 2017, down from 2.18% in May and 5.77% in June last year . At the same time, industrial output grew 1.7% in May on a yearly basis after expanding revised 2.8% in April. Moreover, dollar’s weakness against other currencies overseas, foreign fund inflows and good going in the local equity markets, mainly aided the currency’s appreciation. On the global front, dollar was lower against most of the other major currencies on Thursday after comments from Federal Reserve Chair Janet Yellen on inflation spurred investors to lower their expectations on the pace of US rate increases.

Finally, the rupee ended at 64.44, 9 paise stronger from its previous close of 64.53 on Wednesday. The currency touched a high and low of 64.50 and 64.39 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 64.43 and for Euro stood at 73.78 on July 13, 2017. While the RBI’s reference rate for the Yen stood at 57.02, the reference rate for the Great Britain Pound (GBP) stood at 83.24. The reference rates are based on 12 noon rates of a few select banks in Mumbai.


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