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Indian rupee wipes out losses; ends stronger against dollar

04 Dec 2019 Evaluate

Indian rupee, after a weak start, wiped out all of its losses and ended stronger against dollar on Wednesday ahead of the Reserve Bank of India’s (RBI) monetary policy decision on December 05. There are expectation that the RBI may cut interest rates for the sixth straight time, to support growth that has continued to slip. Sentiments got a boost with Commerce Minister Piyush Goyal’s statement that the Foreign Direct Investment (FDI) inflow into India has increased in the last fiscal in comparison to previous years with $62 billion foreign investments in 2018-19. In 2017-18, the total FDI inflow was $60.97 billion. Some support also got with report that global rating agency S&P has reaffirmed sovereign rating of India with a stable outlook. On the global front, the pound rallied against the US dollar as some weakness in the greenback triggered some technical demand for the British currency.

Finally, the rupee ended at 71.53, 13 paise stronger from its previous close of 71.66 on Tuesday. The currency touched a high and low of 71.80 and 71.53 respectively. The reference rate for the dollar stood at 71.60 and for Euro stood at 79.29 on December 03, 2019. While the reference rate for the Yen stood at 65.59, the reference rate for the Great Britain Pound (GBP) stood at 92.66. 

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