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Rupee snaps six-day rally as dollar advances

17 Oct 2017 Evaluate

Indian rupee, snapping six successive days of gains, depreciated against dollar on Tuesday due to continued bouts of dollar demand from banks and importers. Traders failed to get relief with the report that the International Monetary Fund suggested India to consider setting up an independent fiscal council, saying this institution has contributed to better outcomes in the countries where it has been introduced. The dollar’s gains against some other currencies overseas coupled with lackluster trade in the equity markets also weighed negatively on the market. On the global front, dollar strengthened to a one-week high against a basket of major currencies on Tuesday, supported by a rise in Treasury yields following a report US President Donald Trump was edging towards choosing a hawk as the next head of the Federal Reserve.

Finally, the rupee ended at 65.03, 31 paise weaker from its previous close of 64.72 on Monday. The currency touched a high and low of 65.03 and 64.81 respectively. The Reserve Bank of India's (RBI) reference rate for the dollar stood at 64.92 and for Euro stood at 76.42 on October 17, 2017. While the RBI's reference rate for the Yen stood at 57.87, the reference rate for the Great Britain Pound (GBP) stood at 86.03. The reference rates are based on 12 noon rates of a few select banks in Mumbai.

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