Indian rupee pared all of its initial losses and ended tad higher against dollar on Wednesday, owing to dollar sale by exporters and banks. Traders took some support with foreign brokerage report that India’s medium-term potential growth is likely to be above 7 percent, backed by policy reforms, higher investments and stable global growth environment. The report added that India ranks higher in medium-term growth potential compared to other emerging markets like Brazil, Russia, Indonesia and China. Besides, gains in the domestic equity markets supported the local unit. However, dollar’s strength against major global currencies overseas restricted further up move. On the global front, dollar rose to its highest level in a week against a basket of currencies on Wednesday, as investor focus shifted to the minutes of the Federal Reserve’s last policy meeting.
Finally, the rupee ended at 64.77, 2 paise stronger from its previous close of 64.79 on Tuesday. The currency touched a high and low of 64.94 and 64.70 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 64.81 and for Euro stood at 79.94 on February 21, 2018. While the RBI’s reference rate for the Yen stood at 60.17, the reference rate for the Great Britain Pound (GBP) stood at 90.65. The reference rates are based on 12 noon rates of a few select banks in Mumbai.
