Exhibiting strength against the dollar for the third straight day, Indian rupee ended higher on Thursday on continued selling of the greenback. Sentiments remained optimistic on report that Inflation based on wholesale prices eased to a six-month low of 2.84% in January on cheaper food articles even as vegetable prices continued to rule high. Calculated on the basis of Wholesale Price Index (WPI), the inflation was 3.58% in December 2017 and 4.26% in January 2017. Some support also came with private report stating that the RBI’s revised framework for quicker and time-bound resolution of stressed assets is a long-term positive for banks. The report stated that the new framework has the potential to bring about a big change in the approach of banks to monitor their exposures and resolution of NPAs. Besides, a muted show by the dollar against other currencies overseas also supported the rupee’s uptrend. On the global front, dollar lost further ground against yen on Thursday, hitting new 15-month lows, after US consumer price data for January fueled worries about accelerating inflation in the country.
Finally, the rupee ended at 63.91, 17 paise stronger from its previous close of 64.08 on Wednesday. The currency touched a high and low of 63.98 and 63.86 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 63.92 and for Euro stood at 79.67 on February 15, 2018. While the RBI’s reference rate for the Yen stood at 60.05, the reference rate for the Great Britain Pound (GBP) stood at 89.54. The reference rates are based on 12 noon rates of a few select banks in Mumbai.
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