Rising for the third straight session, Indian rupee ended marginally higher against dollar on Thursday, on persistent selling of the American currency by exporters. Market participants got some comfort after the RBI's Monetary Policy Committee (MPC) lowered the repo rate by 25 basis points to 6.25 percent. The MPC changed the policy stance to ‘neutral’ from ‘calibrated tightening’. It also pegged H1 FY20 (April-September) inflation at 3.2-3.4 percent, assuming a normal monsoon. Some support came with Moody's Investors Service’s statement that the direct cash transfer programme for farmers and tax relief steps for the middle-class will give a fiscal stimulus of about 0.45 percent of GDP, and support growth through increased consumption, though at a fiscal cost. On the global front, euro weakened on Thursday after data showed Germany's economy slowed in December, underscoring fears about a broader slump in Europe.
Finally, the rupee ended at 71.45, 11 paise stronger from its previous close of 71.56 on Wednesday. The currency touched a high and low of 71.76 and 71.30 respectively. The reference rate for the dollar stood at 71.46 and for Euro stood at 81.20 on February 07, 2019. While the reference rate for the Yen stood at 65.00, the reference rate for the Great Britain Pound (GBP) stood at 92.44.
