Indian rupee settled marginally lower on Thursday against dollar amid strengthening greenback and sustained foreign fund outflows. Rupee sentiment remained dampened with a private report stating that global economic growth is expected to slow down in 2019, as tighter monetary policy, weaker earnings growth and political challenges confront the world's major economies. The report said that for the year ahead that it expected global economic growth to slow to 3.6 percent in 2019, after seeing a growth of 3.8 percent in 2018. However, losses remained capped with the Finance Ministry in its 2018 review stating that the Indian economy is projected to be the fastest-growing major economy in the current and upcoming fiscal 2019-20. It also emphasized that the government has taken several steps to boost investors’ confidence. It added that the average growth of the Indian economy between 2014-15 and 2017-18 was 7.3%, fastest among the major economies in the world. Some solace also came with the Finance Ministry’s another statement that the direct tax-to-GDP ratio of 5.98% achieved during 2017-18 fiscal is the best in the last 10 years. It was 5.57% in 2016-17 and 5.47% in 2015-16.
Finally, the rupee ended at 70.20, 2 paise weaker from its previous close of 70.18 on Wednesday. The currency touched a high and low of 70.53 and 70.03 respectively. The reference rate for the dollar stood at 70.36 and for Euro stood at 79.92 on January 3, 2019. While the reference rate for the Yen stood at 65.80, the reference rate for the Great Britain Pound (GBP) stood at 88.27.
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