After yesterday’s steep losses, Indian rupee gained ground against dollar and ended significantly higher on Wednesday, on persistent selling of the American currency by exporters. Sentiments turned optimistic with Ficci’s report that India’s GDP growth is expected at 7.1 per cent for the January-March quarter of the last fiscal and 6.6 per cent for the entire 2017-18. The Central Statistics Office (CSO) is scheduled to release GDP numbers for the fourth quarter as well as the 2017-18 fiscal on May 31. The domestic unit also found support from Indian Meteorological Department’s (IMD) statement that monsoon season rainfall for the country as a whole is likely to be 97% of the LPA. IMD also said that rainfall in India for the 2018 southwest monsoon season is most likely to be normal and this year will be the third year for the normal monsoon with very less chance of rain deficit. On the global front, euro recovered from 10-month lows on Wednesday after reports that Italy's biggest party would make a renewed attempt to form a coalition government andend months of political turmoil.
Finally, the rupee ended at 67.43, 45 paise stronger from its previous close of 67.88 on Tuesday. The currency touched a high and low of 67.91 and 67.42 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 67.62 and for Euro stood at 78.19 on May 30, 2018. While, the RBI’s reference rate for the Yen stood at 62.21, the reference rate for the Great Britain Pound (GBP) stood at 89.70. The reference rates are based on 12 noon rates of a few select banks in Mumbai.
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