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Rupee strengthens on RBI interest rate cut hopes

03 Dec 2019 Evaluate

Rupee strengthened against the US dollar on Tuesday ahead of the Reserve Bank of India's (RBI) monetary policy decision on Thursday with hopes that the Reserve Bank will go for another rate cut to boost economic growth. Though, rise in oil prices and sustained foreign fund outflows, restricted its gains. Foreign Institutional Investors (FII) sold shares worth Rs 1,731.33 crore on Monday, exchange data showed. Meanwhile, investors are also awaiting fresh cues on the potential US-China trade deal. On the global front, the US dollar held near a one-week low versus the yen and near the lowest in almost two weeks against the euro, on concern about weak US manufacturing data and signs of new fronts in the US trade war.

The partially convertible currency is currently trading at 71.57, stronger by 9 paise from its previous close of 71.66 on Monday. The currency touched a high and low of 71.6600 and 71.5400 respectively. The reference rate for the dollar stood at 71.72 and for Euro stood at 78.97 on November 29, 2019. While the reference rate for the Yen stood at 65.51, the reference rate for the Great Britain Pound (GBP) stood at 92.66.

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