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Indian rupee strengthens on dollar selling by exporters

19 Mar 2014 Evaluate

The Indian rupee coming out of its last session’s sluggishness strengthened on Wednesday, supported by fresh selling of the dollar by exporters amid sustained foreign capital inflows. Early gains in domestic equity markets and dollar’s weakness against major currencies overseas also helped rupee post gains. Though the equity markets pared their gains, the rupee continued its momentum and ended considerably stronger. In the global markets there was some cautiousness ahead of Fed Chief’s policy statement on expectation that the Federal Reserve will keep tapering stimulus that has boosted fund flows to emerging markets. On the other hand, dollar gained against most major currencies, while the pound advanced after the Bank of England said there’s a risk of further gains.

Finally, the rupee ended at 60.96, stronger by 24 paise from its previous close of 61.20 on Tuesday. The currency touched a high and low of 61.16 and 60.91 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 61.09 and for Euro stood at 85.07 on March 19, 2014. While, the RBI’s reference rate for the Yen stood at 60.18, the reference rate for the Great Britain Pound (GBP) stood at 101.4149. The reference rates are based on 12 noon rates of a few select banks in Mumbai.

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