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Rupee ends higher for the second day

29 Jan 2020 Evaluate

Gaining for the second day, Indian rupee ended higher against the US dollar on Wednesday, on continued selling of the US currency by banks and exporters. Traders took solace with NITI Aayog CEO Amitabh Kant’s statement that the goal of India becoming a $5 trillion economy is achievable even as it’s a tough task. However, the states would have to play a critical role for the national economy to meet the challenging target. Traders also took a note of report that India and the US are likely to finalise a trade deal pegged above $10 billion (over Rs 71,200 crore) in February. The report also adds that the issue of medical devices-a bone of contention between the two sides-has been resolved. Besides, positive trend in equity market too supported the rupee. On the global front, dollar held near two-month highs on Wednesday and other currencies seen as safe havens stabilised as investors regained their composure after an outbreak of coronavirus in China, awaiting more news on possible economic damage.

Finally, the rupee ended at 71.25, 6 paise stronger from its previous close of 71.31 on Tuesday. The currency touched a high and low of 71.29 and 71.17 respectively. The reference rate for the dollar stood at 71.32 and for Euro stood at 78.62 on January 28, 2020. While the reference rate for the Yen stood at 65.41, the reference rate for the Great Britain Pound (GBP) stood at 93.09.

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