Halting a six-day slide, Indian rupee ended stronger against dollar on Wednesday, due to increased selling of the American currency by exporters and banks. Traders took some encouragement with report stating that Reserve Bank of India (RBI) will inject Rs 12,000 crore liquidity into the system through purchase of government bonds on October 11 to meet the festival season demand for funds. It added that the government will purchase bonds with maturity ranging between 2020 to 2030. The market participants overlooked a private report stating that India’s retail inflation likely sped up in September on higher food and fuel costs, pushed up by a battered rupee and suggesting further policy tightening from the RBI. A strong domestic equity market too propped up the rupee sentiments in early trade, as the local markets made a strong come back from last session’s fall. On the global front, euro steadied on Wednesday near $1.15, moving away from seven-week lows after a fall in U.S. Treasury yields took some steam out of the dollar's recent run.
Finally, the rupee ended at 74.21, 18 paise stronger from its previous close of 74.39 on Tuesday. The currency touched a high and low of 74.29 and 74.05 respectively. The reference rate for the dollar stood at 74.13 and for Euro stood at 85.26 on October 10, 2018. While the reference rate for the Yen stood at 65.60, the reference rate for the Great Britain Pound (GBP) stood at 97.62. The reference rates are based on 12 noon rates of a few select banks in Mumbai.
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