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Rupee snaps 5-day depreciating streak on Thursday

08 Aug 2019 Evaluate

Reversing its five-session fall, Indian rupee bounced back to end higher against the US currency on Thursday, on persistent selling of the American currency by exporters. Sentiments turned optimistic with the India Meteorological Department (IMD) data showing that India received 28% more rainfall than the 50-year average in the week to August 7, easing concerns of drought. Monsoon rains are crucial for farm output and economic growth, as agriculture forms about 15% of India's $2.5-trillion economy. A spectacular relief rally in local equities also supported the forex sentiment. On the global front, dollar steadied on Thursday as risk sentiment rose after resilient Chinese trade data and as Beijing’s efforts to slow a slide in the value of the renminbi encouraged investors to buy riskier currencies.

Finally, the rupee ended at 70.69, 20 paise stronger from its previous close of 70.89 on Wednesday. The currency touched a high and low of 70.94 and 70.55 respectively. The reference rate for the dollar stood at 70.95 and for Euro stood at 79.50 on August 6, 2019. While the reference rate for the Yen stood at 66.80, the reference rate for the Great Britain Pound (GBP) stood at 86.22.

 

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