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Rupee ends tad lower against dollar on Tuesday

05 Dec 2017 Evaluate

In line with equity market, the Indian rupee ended marginally lower against US dollar on Tuesday, due to fresh demand for the American currency from banks and importers. Traders’ attention turned towards the outcome of two-day policy review by the Reserve Bank of India (RBI) beginning today. Sentiments remained dampened after global rating agency Fitch Ratings pared India’s growth forecast for this financial year to 6.7% from 6.9% estimated earlier citing lower than expected recovery in the second quarter. For 2018-19, the credit rating agency has cut the forecast to 7.3% from 7.4% earlier. On the global front, dollar dipped against euro on Tuesday, as investors waited to see how the next step of the US tax reform legislation proceeds rather than extend the rise made by the dollar at the start of the week following the US Senate's approval of the tax Bill.

Finally, the rupee ended at 64.38, 1 paise weaker from its previous close of 64.37 on Monday. The currency touched a high and low of 64.46 and 64.22 respectively. The Reserve Bank of India's (RBI) reference rate for the dollar stood at 64.37 and for Euro stood at 76.37 on December 05, 2017. While the RBI's reference rate for the Yen stood at 57.15, the reference rate for the Great Britain Pound (GBP) stood at 86.63. The reference rates are based on 12 noon rates of a few select banks in Mumbai.

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