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Rupee ends strong amid gains in equity market

04 Jan 2018 Evaluate

Indian rupee ended higher against the dollar on Thursday, with the American currency coming under heavy selling by banks and exporters. Sentiment got up-beat with the survey report showing that activity in India's services industry bounced back to modest growth in December after contracting in the previous month, as new business orders stabilised and price increases slowed. The Nikkei/IHS Markit Services Purchasing Managers' Index rose to 50.9 in December from 48.5 in November. Beside, dollar's weakness against other currencies overseas together with strong momentum in the domestic equity markets too supported the domestic unit. On the global front, Sterling edged up against dollar on Thursday after surveys showed Britain’s dominant services sector rebounded strongly last month although investors remained cautious of pushing the British currency higher due to a lack of broad catalysts.

Finally, the rupee ended at 63.41, 12 paise stronger from its previous close of 63.53 on Wednesday. The currency touched a high and low of 63.61 and 63.36 respectively. The Reserve Bank of India's (RBI) reference rate for the dollar stood at 63.39 and for Euro stood at 76.24 on January 04, 2018. While the RBI's reference rate for the Yen stood at 56.31, the reference rate for the Great Britain Pound (GBP) stood at 85.74. The reference rates are based on 12 noon rates of a few select banks in Mumbai.


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