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Rupee extends gains for second straight day

13 Mar 2018 Evaluate

Extending gains for the second straight day, Indian rupee ended stronger against dollar on Tuesday, due to selling of greenback by banks and importers. Market participants got some comfort with data indicating that India’s industrial output surged to 7.5% in the month of January 2018, as compared to 3.5% in the same month of the previous year and 7.1% in December 2017, while the retail inflation cooled down to a 4-month low of 4.44% in the month of February 2018, as compared to 5.07% in January. Traders also took some support with Minister of state for commerce and industry C.R. Chaudhary’s statement that the inflow of Foreign Direct Investment (FDI) into India has reached to $208.99 billion during April 2014 to December 2017 period. Though, dollar’s strength against other currencies overseas limited further appreciation of Indian currency. On the global front, dollar was moving higher against rivals on Tuesday, as investors watched out for a potentially market-moving update on US consumer prices.

Finally, the rupee ended at 64.89, 15 paise stronger from its previous close of 65.04 on Monday. The currency touched a high and low of 65.00 and 64.84 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 64.95 and for Euro stood at 80.09 on March 13, 2018. While the RBI’s reference rate for the Yen stood at 60.85, the reference rate for the Great Britain Pound (GBP) stood at 90.23. The reference rates are based on 12 noon rates of a few select banks in Mumbai.

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