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Rupee ends marginally higher against dollar
Dec-05-2018

Indian rupee ended marginally higher against US dollar on Wednesday as exporters and banks stepped up selling of the American currency. Traders took support with a monthly survey indicating that the country's services sector activity in November expanded at the quickest pace since July, driven by new work orders and favourable market conditions, which in turn led to a continued rise in jobs. The seasonally adjusted Nikkei India Services Business Activity Index rose to a four-month high of 53.7 in November, from 52.2 in October. However, gains were limited as some anxiety came with Niti Aayog Vice Chairman Rajiv Kumar’s statement that the country’s economy is likely to bounce back during the fourth quarter at a faster rate to match the overall projection for the current fiscal, but, he added that the economy is unlikely to recover in the third quarter from the slow pace during the last quarter. Meanwhile, Reserve Bank of India (RBI) kept the repo rate unchanged at 6.5 per cent in its December policy review. The reverse repo rate has also been maintained at 6.25 per cent. On the global front, dollar edged up on Wednesday but remained under pressure as an inversion in part of the Treasury yield curve caused concern about a possible U.S. recession.

Finally, the rupee ended at 70.46, 3 paise stronger from its previous close of 70.49 on Tuesday. The currency touched a high and low of 70.75 and 70.38 respectively. The reference rate for the dollar stood at 70.51 and for Euro stood at 79.83 on December 05, 2018. While the reference rate for the Yen stood at 62.37, the reference rate for the Great Britain Pound (GBP) stood at 89.44. The reference rates are based on 12 noon rates of a few select banks in Mumbai.

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