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Rupee recovers from all-time low on Wednesday

12 Sep 2018 Evaluate

Recovering from its all-time low of 72.91, Indian rupee ended considerably stronger against the Greenback on Wednesday on fresh selling of dollar by exporters as well as banks. Rupee sentiment was support by report highlighting that India’s exports grew by 19.21% to $27.84 billion in August on account of healthy performance by sectors such as petroleum. Market-men took encouragement with Moody’s Investors Service’s report stating that the sharp depreciation in rupee’s valuation is unlikely to impact India’s sovereign credit profile as rupee-denominated government bonds and robust foreign exchange reserves mitigate the risk. On the global front, the dollar consolidated gains on Wednesday as markets remained cautious about trade talks between the United States and Canada, as protracted weakness in China’s currency weighed on sentiments.

Finally, the rupee ended at 72.18, 27 paise stronger from its previous close of 72.45 on Tuesday. The currency touched a high and low of 72.91 and 72.86 respectively. The reference rate for the dollar stood at 72.75 and for Euro stood at 84.32 on September 12, 2018. While the RBI’s reference rate for the Yen stood at 65.22, the reference rate for the Great Britain Pound (GBP) stood at 94.62. The reference rates are based on 12 noon rates of a few select banks in Mumbai.

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