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Rupee ends higher on persistent dollar selling

04 Sep 2019 Evaluate

After yesterday's steep losses, Indian rupee gained ground against dollar and ended higher on Wednesday, on persistent selling of the American currency by exporters. Traders took support with reports that India's central bank recommended a slew of measures for developing a secondary market for corporate loans, including easing of regulations to allow foreign portfolio investors (FPIs) to directly purchase distressed loans from bank. Also, last hour recovery in local equity markets and dollar losing sheen against some other currencies overseas gave the uptrend some momentum. Traders overlooked report that India’s services sector activity expanded at a slower pace in the month of August, impacted by slower rise in new business inflows. As per the survey report, the seasonally adjusted Nikkei Services Business Activity Index eased to 52.4 in August from 53.8 in July. On the global front, dollar extended its fall on Wednesday following disappointing manufacturing data, helping the euro to recover from more than two-year lows.

Finally, the rupee ended at 72.12, 27 paise stronger from its previous close of 72.39 on Tuesday. The currency touched a high and low of 72.42 and 71.96 respectively. The reference rate for the dollar stood at 72.18 and for Euro stood at 78.99 on September 3, 2019. While the reference rate for the Yen stood at 67.92, the reference rate for the Great Britain Pound (GBP) stood at 86.71.

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