Indian rupee ended considerably stronger against the US dollar on Tuesday, on account of selling of the greenback by exporters. Investors took some encouragement with credit ratings agency, Crisil’s latest report that India’s gross domestic product (GDP) growth will improve sharply to 7.5% in the next fiscal year 2018-19 (FY19) from 6.5% expected this fiscal, propelled by domestic consumption, policy push, and synchronised global growth. Sentiments also got some boost with a private report estimating that the Goods and Services Tax collection for 2018-19 would grow at a rate of 14-16%, bringing it closer to the decadal growth rate in indirect taxes of just under 14%. However, sharp selling in domestic equity markets restricted the local unit’s further up move. On the global front, the dollar edged higher against yen on Tuesday, supported by receding fears about a trade war stemming from US President Donald Trump’s proposed tariffs on imported steel and aluminium.
Finally, the rupee ended at 64.96, 14 paise stronger from its previous close of 65.10 on Monday. The currency touched a high and low of 65.15 and 64.92 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 64.99 and for Euro stood at 80.20 on March 06, 2018. While the RBI’s reference rate for the Yen stood at 61.20, the reference rate for the Great Britain Pound (GBP) stood at 89.90. The reference rates are based on 12 noon rates of a few select banks in Mumbai.
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