Indian rupee ended significantly higher against dollar on Monday, after exit poll results suggested another term for the ruling NDA government. Sentiments were buoyed by the Reserve Bank of India’s (RBI) data report that the country's foreign exchange reserves rose by $1.368 billion to reach $420.055 billion in the week to May 10 on account of a rise in foreign currency assets. In the previous week, the reserves had increased by $171.9 million to $418.687 billion. Splendid gains of local equities coupled with dollar losing sheen against some other currencies overseas also helped the domestic currency rebound. However, some gains were capped as anxiety spread among the traders with India Meteorological Department (IMD) data showing that pre-monsoon rainfall from March to May, a phenomenon vital to agriculture in several parts of the country, has recorded a deficiency of 22%. The IMD recorded 75.9 millimetres of rainfall from March 1 to May 15 as against the normal rainfall of 96.8 millimetres, which comes to around minus 22%. On the global front, dollar held onto last week's gains on Monday as investors waited for Fed minutes that may give more clues on what prompted U.S. policymakers to strike a broadly neutral stance this month.
Finally, the rupee ended at 69.74, 49 paise stronger from its previous close of 70.23 on Friday. The currency touched a high and low of 70.43 and 69.44 respectively. The reference rate for the dollar stood at 70.16 and for Euro stood at 78.43 on May 20, 2019. While the reference rate for the Yen stood at 64.03, the reference rate for the Great Britain Pound (GBP) stood at 89.72.
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