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Rupee ends with massive gains on persistent dollar selling

27 Aug 2019 Evaluate

Indian rupee ended significantly higher against dollar on Tuesday, on persistent selling of the American currency by exporters.  Sentiments were also buoyed with Chief Economic Advisor Krishnamurthy Subramanian’s statement that the ongoing trade war between the United States of America and China will not have any impact on Indian export which is just below 2 per cent of the global trade. Market participants paid no heed towards Ficci Economic Outlook Survey stating that India's economy will grow at a median rate of 6% during the Q1FY20. Also, it pegged the annual median GDP growth forecast for 2019-20 at 6.9%, with a minimum and maximum estimate of 6.7% and 7.2%, respectively. Besides, positive trend in equity market coupled with dollar losing sheen against some other currencies overseas mainly aided the currency’s appreciation. On the global front, U.S. dollar edged lower on Tuesday, amid investor consternation over current trade issues that led to increased volatility between the dollar-yen pairing a day earlier.

Finally, the rupee ended at 71.48, 54 paise stronger from its previous close of 72.02 on Monday. The currency touched a high and low of 71.87 and 71.45 respectively. The reference rate for the dollar stood at 72.18 and for Euro stood at 80.47 on August 26, 2019. While the reference rate for the Yen stood at 68.61, the reference rate for the Great Britain Pound (GBP) stood at 88.59.

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