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Rupee rises for second straight day on dollar sale

23 Mar 2018 Evaluate

Rising for the second straight day, Indian rupee ended stronger against dollar on Friday, owing to dollar sale by exporters and banks. Traders took support with report that monsoon rains in India are likely to be unaffected by the El Nino weather pattern, which is likely to set in only after the four-month rainy season ends in September. Monsoon season delivers about 70 percent of India’s annual rainfall and is key to the success of the farm sector, which accounts for about 15 percent of India's $2 trillion economy but sustains nearly two thirds of the country’s 1.3 billion people. Besides, dollar losing sheen against some other currencies overseas also supported the local unit. However, heavy losses in the domestic equity market restricted the further up move. On the global front, dollar dropped against most major currencies on Friday, sliding to its lowest level against the yen since the U.S. election in 2016 in a flight to so-called haven assets as the trade rhetoric between President Trump and China hardened.  

Finally, the rupee ended at 65.01, 10 paise stronger from its previous close of 65.11 on Thursday. The currency touched a high and low of 65.21 and 64.97 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 65.13 and for Euro stood at 80.33 on March 23, 2018. While the RBI’s reference rate for the Yen stood at 62.13, the reference rate for the Great Britain Pound (GBP) stood at 91.95. The reference rates are based on 12 noon rates of a few select banks in Mumbai. 

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