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Rupee snaps 5-day fall on Thursday

22 Mar 2018 Evaluate

Snapping five day losing streak, Indian rupee bounced back against the Greenback on Thursday, on the back of fresh dollar selling by exporters and some banks. Traders took support with a report that private equity (PE) investments witnessed a two-fold jump in February with transactions worth $1.3 billion taking the deal tally for the first two months of this year to $2.3 billion. There were 62 PE deals worth $1,330 million, while in the corresponding period last year there were 45 such transactions worth $588 million. Besides, the dollar losing muscle against some currencies overseas largely supported the rupee’s recovery. However, selling in last hour of trade in the domestic equity markets restricted the further up move. On the global front, pound traded close to a seven-week high against dollar on Thursday, heading up after stronger-than-expected UK retail sales and as traders waited for the latest Bank of England announcement.

Finally, the rupee ended at 65.11, 10 paise stronger from its previous close of 65.21 on Wednesday. The currency touched a high and low of 65.15 and 65.02 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 65.06 and for Euro stood at 80.37 on March 22, 2018. While the RBI’s reference rate for the Yen stood at 61.44, the reference rate for the Great Britain Pound (GBP) stood at 92.06. The reference rates are based on 12 noon rates of a few select banks in Mumbai.

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