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Rupee ends with strong gains on persistent dollar selling
Dec-17-2018

In line with equity market, Indian rupee ended significantly higher against dollar on Monday, on persistent selling of the American currency by exporters. Traders took comfort with commerce ministry’s latest data which showed that India’s exports grew by a meager 0.80% to $26.5 billion in November, even as the trade deficit widened to $16.67 billion. Exporters attributed the marginal export growth in November to high base effect, as the foreign shipments in the comparable month of the previous fiscal were quite high at $26.29 billion. Besides, imports rose by 4.31% to $43.17 billion during the month. Some optimism also spread among the investors with Care Ratings in its latest report stating that the investment climate in India has improved amid factors like improved gross fixed capital formation and higher government expenditure. Besides, the dollar losing muscle against other currencies overseas helped the domestic currency rebound. On the global front, euro clawed itself off recent lows on Monday as the dollar paused near 18-month highs and traders waited to see whether the U.S. Federal Reserve’s policy meeting this week would calm nerves about slowing global economic growth.

Finally, the rupee ended at 71.56, 34 paise stronger from its previous close of 71.90 on Friday. The currency touched a high and low of 71.86 and 71.51 respectively. The reference rate for the dollar stood at 71.67 and for Euro stood at 81.07 on December 17, 2018. While the reference rate for the Yen stood at 63.17, the reference rate for the Great Britain Pound (GBP) stood at 90.19.

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