Indian rupee strengthened against US dollar on Wednesday, on increased selling of the American currency by exporters and banks. Sentiments remained up-beat with private report stating that the decision to lower goods and services tax (GST) rates on over 200 items could help pull down retail inflation by 20 basis points from the current levels driven by lower food and beverage prices. Investors overlooked data showing that trade deficit widened to its highest in nearly three years in October, as export growth contracted for the first time after more than a year. The trade deficit widened to $14.02 billion and merchandise exports for October fell 1.12%. The domestic unit also found support from dollar weakened overseas. On the global front, dollar slipped against basket of the other major currencies on Wednesday, as investors remained cautious ahead of the release of October consumer inflation data from the United States later in the day that could provide hints on the Federal Reserve`s monetary tightening policy.
Finally, the rupee ended at 65.22, 20 paise stronger from its previous close of 65.42 on Tuesday. The currency touched a high and low of 65.40 and 65.16 respectively. The Reserve Bank of India's (RBI) reference rate for the dollar stood at 65.36 and for Euro stood at 77.06 on November 15, 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 85.91. The reference rates are based on 12 noon rates of a few select banks in Mumbai.
