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Rupee ends strong amid gains in equity market

30 Oct 2017 Evaluate

Indian rupee ended higher against the dollar on Monday, with the American currency coming under heavy selling by banks and exporters. The domestic currency looked strong from the very beginning and was supported by the gains in the local equity markets. Sentiment got up-beat with the private report stating that the Reserve Bank is likely to cut rates at its December 6 policy review meet as retail inflation remains muted and the October number is expected to be about 3.3 percent. Some support also came with the report that foreign investors have pumped in close to $3 billion in the Indian capital markets so far this month due to high nominal and real yields and stable macroeconomic conditions. Besides, the dollar’s weakness against the yen and other currencies overseas following the ECB move triggered the rise in the local unit.

Finally, the rupee ended at 64.85, 20 paise stronger from its previous close of 65.05 on Friday. The currency touched a high and low of 64.94 and 64.79 respectively. The Reserve Bank of India's (RBI) reference rate for the dollar stood at 64.93 and for Euro stood at 75.42 on October 30, 2017. While the RBI's reference rate for the Yen stood at 57.13, the reference rate for the Great Britain Pound (GBP) stood at 85.37. The reference rates are based on 12 noon rates of a few select banks in Mumbai.

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