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Rupee ends with marginal gains on dollar selling

03 Nov 2017 Evaluate

Indian rupee ended marginally higher against dollar on Friday due to fresh dollar selling by banks and exporters amid persistent capital inflows. Investors took some support with report that India's dominant services industry activity expanded at its fastest pace in four months in October as demand continued to strengthen, despite accelerating price pressures. The Nikkei India Services Purchasing Managers’ Index rose to 51.7 in October from September’s 50.7. Some support also came with the Finance Ministry’s statement that it approved two foreign direct investment (FDI) proposals worth Rs 24.56 crore.  Besides, the dollar losing muscle against other currencies overseas along with positive trend in equity market too supported the rupee.  On the global front, dollar steadied on Friday, capping a week of mild losses, as investors waited for fresh data for evidence of more strength in the US economy and the progress of tax plans to bet on the greenback's outlook.

Finally, the rupee ended at 64.55, 6 paise stronger from its previous close of 64.61 on Thursday. The currency touched a high and low of 64.63 and 64.52 respectively. The Reserve Bank of India's (RBI) reference rate for the dollar stood at 64.57 and for Euro stood at 75.33 on November 03, 2017. While the RBI's reference rate for the Yen stood at 56.66, the reference rate for the Great Britain Pound (GBP) stood at 84.42. The reference rates are based on 12 noon rates of a few select banks in Mumbai.

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