Snapping two days depreciating streak, Indian rupee ended higher against dollar on Wednesday, on persistent selling of the American currency by exporters. Sentiments turned optimistic with Prime Minister Narendra Modi’s statement that India is emerging as a global manufacturing and start-up hub and many of the Made-in-India products, including cars and smartphones, are today exported to nations from whom the country used to import. Besides, the dollar losing muscle against other currencies overseas too supported the rupee. However, there was some cautiousness too with report that the International Monetary Fund (IMF) has cautioned India it should not rely on global financial markets to finance its current account deficit (CAD) when it goes above 3% of gross domestic product (GDP). The Fund basically advised India to rely more on stable sources of foreign inflow - foreign direct investment (FDI). On the global front, euro edged higher on Wednesday ahead of a meeting between U.S. President Donald Trump and European Commission President Jean-Claude Juncker but gains were limited with investors cautious about a trade rift between the two powers.
Finally, the rupee ended at 68.79, 16 paise stronger from its previous close of 68.95 on Tuesday. The currency touched a high and low of 68.97 and 68.70 respectively. The reference rate for the dollar stood at 68.80 and for Euro stood at 80.44 on July 25, 2018. While the RBI’s reference rate for the Yen stood at 61.88, the reference rate for the Great Britain Pound (GBP) stood at 90.58. The reference rates are based on 12 noon rates of a few select banks in Mumbai.
