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Rupee strengthens on mild selling of American currency by exporters

13 Mar 2018 Evaluate

Indian rupee strengthened against the US dollar on Tuesday on mild selling of the American currency by exporters amid sustained foreign capital inflows. Further, domestic equity markets were trading in green as better-than-estimated consumer price inflation eased traders’ fears of near-term interest rate hikes by the Reserve Bank of India (RBI). Retail inflation surprisingly slowed for the second consecutive month to 4.4% in February from 5.1% in January and 5.2% in December. Factory output grew at a robust pace for the third straight month, at 7.5% in January. However, the dollar’s gains against most major global currencies overseas limited the domestic unit’s further up move. On the global front, the yen held firm against the dollar on Tuesday as a political scandal engulfing Japanese Prime Minister Shinzo Abe’s government raised doubts about his ability to continue to pursue his economic policies, including monetary easing.

The partially convertible currency is currently trading at 64.96, stronger by 8 paise from its previous close of 65.04 on Monday. The currency touched a high and low of 64.9750 and 64.9150 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 65.01 and for Euro stood at 80.09 on March 12, 2018. While the RBI’s reference rate for the Yen stood at 60.96, the reference rate for the Great Britain Pound (GBP) stood at 90.12. The reference rates are based on 12 noon rates of a few select banks in Mumbai.

Date 1US$1GBP
March 12, 201865.0199 90.1241
March 09, 201865.078489.8537

(RBI-Reference Rate)

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