Snapping its previous session’s losses, Indian rupee recovered against dollar on Wednesday, on sustained dollar selling by exporters amid record rally in domestic equities. Sentiments remained positive with the Government lowering its additional borrowing plan to Rs 20,000 crore for the fiscal from the earlier proposal of raising an extra Rs 50,000 crore from the market. The reduced borrowing would help contain fiscal deficit within the target. Traders also took some encouragement with Crisil’s latest report stating that India will benefit from stronger global growth in the fiscal 2019 provided there are no more after effects from the implementation of the GST and the economy manages to tide over the asymmetry in monetary policy of advance economies together with higher crude oil prices. Besides, dollar's weakness against some currencies overseas also aided the recovery momentum. On the global front, euro fell against dollar on Wednesday as some investors ramped up bullish bets about the currency though some concerns from policymakers this week damped broader optimism.
Finally, the rupee ended at 63.88, 15 paise stronger from its previous close of 64.03 on Tuesday. The currency touched a high and low of 64.07 and 63.75 respectively. The Reserve Bank of India's (RBI) reference rate for the dollar stood at 63.97 and for Euro stood at 78.34 on January 17, 2018. While the RBI's reference rate for the Yen stood at 57.74, the reference rate for the Great Britain Pound (GBP) stood at 88.12. The reference rates are based on 12 noon rates of a few select banks in Mumbai.
