Extending its rising streak for the sixth straight day, Indian rupee ended higher against dollar on Tuesday, on persistent selling of the American currency by banks and exporters. Sentiments remained up-beat with Prime Minister Narendra Modi setting an ambitious deadline of December-end to implement as many business reforms as possible on the ground so that India could break into the top 50 of the World Bank Ease of Doing Business next year. Traders also took note of RBI’s statement that it will inject Rs 8,000 crore into the system through purchase of government securities on November 22. The OMO operation will help ease tight liquidity situation triggered by series of default by group companies of IL&FS. Moreover, dollar’s weakness against currencies overseas supported the rupee. On the global front, dollar hit a near two-week low against its peers on Tuesday with sentiment soured by Federal Reserve caution on the global outlook and weak data at home, pointing to slower rate hikes.
Finally, the rupee ended at 71.46, 21 paise stronger from its previous close of 71.67 on Monday. The currency touched a high and low of 71.51 and 71.27 respectively. The reference rate for the dollar stood at 71.32 and for Euro stood at 81.68 on November 20, 2018. While the reference rate for the Yen stood at 63.40, the reference rate for the Great Britain Pound (GBP) stood at 91.71. The reference rates are based on 12 noon rates of a few select banks in Mumbai.
