Reversing its two-session steep fall, the rupee bounced back to end higher against the US currency on Tuesday, on persistent selling of the American currency by exporters. Sentiments turned optimistic with S&P Global Ratings’ statement that falling inflation and declining global crude oil prices have created space for the Reserve Bank of India (RBI) to cut interest rates. The RBI is scheduled to announce its sixth bi-monthly policy review for the fiscal on February 7. The upbeat trend was supported by Union Commerce Secretary Anup Wadhawan’s statement that the country's exports in the current fiscal year are expected to surpass the earlier peak of $314 billion in 2013-14. The achievement comes against the backdrop of a very challenging global environment. The exports, in general, have been growing almost consistently for the last three years. On the global front, dollar held on to recent gains against its peers on Tuesday, supported by a recovery in investor risk appetite, which helped push up US yields during the previous session.
Finally, the rupee ended at 71.57, 23 paise stronger from its previous close of 71.80 on Monday. The currency touched a high and low of 71.80 and 71.55 respectively. The reference rate for the dollar stood at 71.74 and for Euro stood at 82.01 on February 05, 2019. While the reference rate for the Yen stood at 65.29, the reference rate for the Great Britain Pound (GBP) stood at 93.56.
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