Halting a four-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 the government's statement that the revised Gross Domestic Product (GDP) figures for the demonetisation year was not cooked up and, in fact, the growth rates are likely to go up further due to the GST. On January 31, the government revised the GDP growth rates by 110 basis points (bps) from 7.1% to 8.2% for 2016-17, the year of demonetisation, and by 50 bps from 6.7% to 7.2% for fiscal 2017-18. Traders even overlooked reports that Foreign Direct Investment (FDI) equity inflows to India from April to December 2018 declined by seven per cent. The latest figures released by the DPIIT showed that India managed to attract almost $33.5 billion from April to December 2018. A spectacular relief rally in local equities also supported the forex sentiment. On the global front, dollar was capped against its peers on Wednesday on falling US yields and before the Federal Reserve's policy meeting minutes, though it managed to gain on the yen as stronger investor risk appetite curbed demand for the Japanese currency.
Finally, the rupee ended at 71.10, 24 paise stronger from its previous close of 71.34 on Monday. The currency touched a high and low of 71.34 and 71.07 respectively. The reference rate for the dollar stood at 71.17 and for Euro stood at 80.70 on February 20, 2019. While the reference rate for the Yen stood at 64.21, the reference rate for the Great Britain Pound (GBP) stood at 92.92.
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