Snapping its previous session’s losses, Indian rupee recovered marginally against dollar on Wednesday, on fresh selling of the US currency by exporters and banks. Traders took some support with World Bank India chief Junaid Ahmad’s statement that effective implementation of the new tax regime will help the economy achieve 8% plus growth and described GST a ‘tectonic shift’. Junaid Ahmad, further highlighting the positive impact of GST, said that the economic corridors of India will change on the back of the new tax regime. Besides, weakness of dollar against the some major currencies overseas too gave the rupee some relief. However, gains were limited with SBI’s Research report that economy has been on a downslide since September 2016 and the slowdown is real and not technical, calling for more public spending to arrest the slide. On the global front, dollar edged closer to 2-1/2-year lows hit earlier this month on Wednesday, as investors waited to see whether ratesetters in the United States would signal tighter policy or hold off because of tepid inflation data.
Finally, the rupee ended at 64.27, 5 paise stronger from its previous close of 64.32 on Tuesday. The currency touched a high and low of 64.43 and 64.24 respectively. The Reserve Bank of India's (RBI) reference rate for the dollar stood at 64.36 and for Euro stood at 77.24 on September 20, 2017. While the RBI's reference rate for the Yen stood at 57.76, the reference rate for the Great Britain Pound (GBP) stood at 87.02. The reference rates are based on 12 noon rates of a few select banks in Mumbai.
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