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Rupee ends considerably stronger along with equities
Oct-16-2018

Indian rupee ended stronger against dollar on Tuesday, due to increased selling of the American currency by exporters. Traders took encouragement with report that India’s trade deficit declined to a five-month low in September even as exports contracted, providing some respite from the rising gap that has sparked concern about the current account deficit (CAD). Trade deficit declined to $13.98 billion in September from $17.39 billion in August following slower growth in imports. Besides, exports were pegged at $27.95 billion in September, down 2.15% from a year ago, while imports rose 10.45% to $41.9 billion, lowest in five months. Meanwhile, the rupee derived its strength from strong gains in the local equity markets as well as strength of other Asian currencies against dollar. On the global front, dollar was mired near a three-week low on Tuesday thanks to tepid U.S. data overnight, though broadly firmer U.S. Treasury yields prevented a sell-off.

Finally, the rupee ended at 73.48, 35 paise stronger from its previous close of 73.83 on Monday. The currency touched a high and low of 73.96 and 73.47 respectively. The reference rate for the dollar stood at 73.90 and for Euro stood at 85.57 on October 16, 2018. While the reference rate for the Yen stood at 65.95, the reference rate for the Great Britain Pound (GBP) stood at 97.33. The reference rates are based on 12 noon rates of a few select banks in Mumbai.

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