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Rupee snaps three-day gaining streak

30 Nov 2017 Evaluate

Snapping its three-day gaining streak, Indian rupee ended weaker against dollar on Thursday due to demand for greenback by banks and importers. Traders remained on sidelines ahead of September quarter GDP data that will be announced later in the day. Traders’ sentiments remained subdued as India reported a fiscal deficit of Rs 5.25 trillion ($81.36 billion) for April-October, or 96.1% of the budgeted target for the current fiscal year that ends in March 2018. The deficit was 79.3% of the full-year target during the same period a year ago. Net tax receipts in the first seven months of 2017/18 fiscal year were Rs 6.34 trillion. Moreover, the fall in the rupee was also triggered by dollar’s appreciation overseas against a basket of major currencies along with extremely bearish local equity markets. On the global front, euro dropped against dollar on Thursday, after data showing that inflation in the euro area missed forecasts last month, while another report showed that the unemployment rate in the region hit an almost nine-year low.

Finally, the rupee ended at 64.46, 14 paise weaker from its previous close of 64.32 on Wednesday. The currency touched a high and low of 64.62 and 64.41 respectively. The Reserve Bank of India's (RBI) reference rate for the dollar stood at 64.43 and for Euro stood at 76.48 on November 30, 2017. While the RBI's reference rate for the Yen stood at 57.46, the reference rate for the Great Britain Pound (GBP) stood at 86.79. The reference rates are based on 12 noon rates of a few select banks in Mumbai.


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