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Rupee snaps 3-day fall on Thursday
Dec-13-2018

Indian rupee made a smart recovery against the American currency after a three-day straight fall and ended higher on Thursday, on the back of positive macro-economic data. India’s industrial production measured by Index of Industrial Production (IIP) surged to 11-month high of 8.1% in the month of October 2018 as against 4.5% in September 2018 and 1.8 percent in October 2017, while India’s retail inflation based on Consumer Price Index (CPI) cooled down to a 17-month low of 2.33% in the month of November 2018, as compared to 4.88% in the same month of previous year. Traders also took comfort after the new RBI governor Shaktikanta Das took charge and stressed on the need of a consultative approach to tackle pressing economic issues. Positive gains in the domestic equities coupled with dollar’s weakness against some currencies overseas too supported the domestic unit. On the global front, euro rose slightly on Thursday after Italy said it would cut its budgetary spending plans in a row with the European Union, although traders were in a cautious mood ahead of the European Central Bank’s monetary policy meeting.

Finally, the rupee ended at 71.68, 33 paise stronger from its previous close of 72.01 on Wednesday. The currency touched a high and low of 71.72 and 71.51 respectively. The reference rate for the dollar stood at 71.53 and for Euro stood at 81.34 on December 13, 2018. While the reference rate for the Yen stood at 63.06, the reference rate for the Great Britain Pound (GBP) stood at 90.30.

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