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Rupee ends at 2-year high against dollar after rate cut by RBI

02 Aug 2017 Evaluate

Indian rupee appreciated against US dollar to hit over 2-year high and breached 64-mark on Wednesday, on increased liquidation of the American currency by exporters and banks. Local currency gained further momentum after the Reserve Bank of India (RBI) decided to cut its key policy rate, or the repo rate, by 25 bps to 6%, which was in line with market expectations. Some encouragement also came with Minister of State for Finance Santosh Kumar Gangwar’s statement that the government has collected over Rs 1.80 lakh crore in direct tax till July 15 in the current fiscal, an increase of 21.4% year-on-year, 'belying' fears of slowdown in economic activities. On the global front, dollar was near 15-month lows against a currency basket on Wednesday as investors turned their attention to key economic events this week, particularly Friday’s US jobs report for July.

Finally, the rupee ended at 63.70, 38 paise stronger from its previous close of 64.08 on Tuesday. The currency touched a high and low of 64.13 and 63.60 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 64.06 and for Euro stood at 75.74 on August 02, 2017. While the RBI’s reference rate for the Yen stood at 57.86, the reference rate for the Great Britain Pound (GBP) stood at 84.64. The reference rates are based on 12 noon rates of a few select banks in Mumbai.

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