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Rupee rises for second straight day on dollar sale

17 May 2018 Evaluate

Indian rupee ended stronger against dollar on Thursday, owing to dollar sale by exporters and banks. This was the second day of consecutive gains for the domestic currency. Traders took some support with report that the Centre has contained its fiscal deficit for FY18 at 3.42% of gross domestic product (GDP), down from 3.5% estimated (RE) when Budget FY19 was presented on February 1. An Rs 85,000 crore (3.8%) reduction in expenditure from the RE level of Rs 22.18 lakh crore and a marginal upward revision in nominal GDP in the second advance estimate (the Budget relied on the first advance estimate) allowed the government to curb the deficit. However, dollar’s strength against major global currencies overseas along with heavy losses in the domestic equity market restricted the further up move. On the global front, euro hovered near five-month lows on Thursday, as investors fretted about the demands of Italian populist parties and as a fresh rise in US government bond yields underpinned demand for the dollar.

Finally, the rupee ended at 67.68, 10 paise stronger from its previous close of 67.78 on Wednesday. The currency touched a high and low of 67.79 and 67.58 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 67.71 and for Euro stood at 79.89 on May 17, 2018. While the RBI’s reference rate for the Yen stood at 61.28, the reference rate for the Great Britain Pound (GBP) stood at 91.64. The reference rates are based on 12 noon rates of a few select banks in Mumbai.


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