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Rupee ends higher against greenback on Tuesday

31 Jul 2018 Evaluate

Indian rupee strengthened against dollar on Tuesday, on good bouts of dollar-selling by banks and exporters. Market participants took support with a private report stating that GDP growth is likely to peak in April-June quarter and then moderate to 7.2% in the second half of 2018 from around 7.8% in first half. Some comfort also came with Crisil’s report that India is much better placed than many other emerging market peers or compared to its own situation in 2013 during the taper tantrum, to tackle risks arising out of asymmetry in monetary policy of advanced economies, the rise in crude prices and the escalation of trade war tension. However, gains remained capped as anxiety remained among traders ahead of the Reserve Bank of India’s (RBI) decision on the monetary policy and key interest rates on August 01. On the global front, Japanese yen fell against dollar and is poised to register its biggest daily loss in nearly three weeks on Tuesday after the central bank pledged to keep interest rates low and adopted a forward guidance model to strengthen its commitment for its massive policy stimulus.

Finally, the rupee ended at 68.55, 12 paise stronger from its previous close of 68.67 on Monday. The currency touched a high and low of 68.69 and 68.54 respectively. The reference rate for the dollar stood at 68.60 and for Euro stood at 80.36 on July 31, 2018. While the RBI’s reference rate for the Yen stood at 61.69, the reference rate for the Great Britain Pound (GBP) stood at 90.08. The reference rates are based on 12 noon rates of a few select banks in Mumbai. 

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