Indian rupee ended tad higher against dollar on Wednesday, owing to dollar sale by exporters and banks. Traders took some support after the International Monetary Fund sees Indian economic growth rebounding to around 7 per cent in the next financial year, supported by measures like monetary policy stimulus & corporate income tax cuts. However, gains remain capped as India Ratings & Research (Ind-Ra) believes that aggregate states’ fiscal deficit slippage to 2.9% of GDP in FY19 revised estimate (RE), from 2.6% in FY19 budget estimate (BE) (Ind-Ra forecast: 2.8%) is mainly due to an expansionary fiscal policy followed by the state governments. On the global front, pound firmed against the dollar and euro on Wednesday as the European Union prepared to grant a further delay to Brexit, averting the prospect of Britain departing the bloc next week without a deal.
Finally, the rupee ended at 70.91, 3 paise stronger from its previous close of 70.94 on Tuesday. The currency touched a high and low of 71.03 and 70.89 respectively. The reference rate for the dollar stood at 70.87 and for Euro stood at 79.06 on October 22, 2019. While the reference rate for the Yen stood at 65.26, the reference rate for the Great Britain Pound (GBP) stood at 91.96.
