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Rupee extends gains for second straight session

10 Apr 2019 Evaluate

Extending gains for the second straight session, Indian rupee ended higher against dollar on Wednesday, on persistent selling of the American currency by banks and exporters. Market participants got support with report that the government has managed to meet the revised fiscal deficit target of 3.4 percent of the GDP after it cut last minute expenditure and rolled over fuel subsidies to make up for the shortfall in tax collection. However, further upward move got restricted as the International Monetary Fund (IMF) lowered Gross Domestic Product (GDP) outlook for India as well as the global economy. The IMF has moderately scaled down India’s economic growth projection to 7.3 per cent for the current financial year from its earlier forecast of 7.4 per cent and suggested that the country should continue to undertake economic reforms, including hire and fire, to create jobs. On the global front, safe-haven yen held most of its recent gains on Wednesday as investor caution prevailed due to fresh global trade tensions and as the International Monetary Fund (IMF) downgraded its global economic outlook.

Finally, the rupee ended at 69.11, 19 paise stronger from its previous close of 69.30 on Tuesday. The currency touched a high and low of 69.35 and 69.09 respectively. The reference rate for the dollar stood at 69.14 and for Euro stood at 77.91 on April 10, 2019. While the reference rate for the Yen stood at 62.21, the reference rate for the Great Britain Pound (GBP) stood at 90.37.

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