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Rupee snaps three sessions’ depreciating string on Thursday

28 Sep 2017 Evaluate

Snapping its three days losing string, Indian rupee bounced back against dollar on Thursday on dollar selling by exporters and banks, while last hour recovery in local equity markets also influenced the rupee sentiment. Investors remained optimistic with the Niti Aayog vice chairman Rajiv Kumar’s statement that the economic downturn which began in the last two years of UPA II regime has bottomed out and the growth will improve in the next two quarters. Some comfort also came with private report highlighting that India is expected to be a $6 trillion economy -- the third largest in the world -- in the next 10 years, majorly helped by digitization. Besides, dollar struggled against some other currencies overseas too helped rupee to recover. On the global front, dollar consolidated gains after hitting a one-month high on Thursday against a basket of currencies as U.S. Treasury yields rose, prompting investors to unwind some of their dollar shorts.

Finally, the rupee ended at 65.51, 19 paise stronger from its previous close of 65.70 on Wednesday. The currency touched a high and low of 65.89 and 65.48 respectively. The Reserve Bank of India's (RBI) reference rate for the dollar stood at 65.76 and for Euro stood at 77.17 on September 28, 2017. While the RBI's reference rate for the Yen stood at 58.18, the reference rate for the Great Britain Pound (GBP) stood at 87.98. The reference rates are based on 12 noon rates of a few select banks in Mumbai.

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