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Rupee ends higher against greenback on Thursday

14 Dec 2017 Evaluate

After a two-day fall, Indian rupee gained ground against dollar and ended higher on Thursday, due to selling of the US currency by exporters and banks. Local currency got some support with a private report stating that India’s economic growth has bottomed out and the GDP growth will recover further to 7% over the next few quarters. Besides, gains in the domestic equity markets also influenced the rupee sentiment. However, the rupee gains, to some extent, were capped with the Reserve Bank of India (RBI) data showing that India’s current account deficit (CAD) widened to 1.2% of GDP or $7.2 billion in July-September, from 0.6% of GDP or $3.4 billion reported in the same period a year ago. Meanwhile, the trade deficit widened to $32.8 billion in the previous quarter from $25.6 billion a year ago.  On the global front, dollar held at more than one-week lows on Thursday after the US central bank kept its economic forecasts unchanged with investors expecting more losses if the European Central Bank outlines a more optimistic outlook on the economy.

Finally, the rupee ended at 64.34, 10 paise stronger from its previous close of 64.44 on Wednesday. The currency touched a high and low of 64.35 and 64.24 respectively. The Reserve Bank of India's (RBI) reference rate for the dollar stood at 64.27 and for Euro stood at 75.99 on December 14, 2017. While the RBI's reference rate for the Yen stood at 57.06, the reference rate for the Great Britain Pound (GBP) stood at 86.35. The reference rates are based on 12 noon rates of a few select banks in Mumbai.


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