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Rupee hits three-week high on lower crude price
Dec-18-2018

Continuing strong recovery momentum for the second day, Indian rupee ended near three-week high against US dollar on Tuesday, on account of selling of American currency by banks and exporters amid softening crude oil prices. Traders took encouragement with the Ministry of Commerce’s latest report showing that India’s Foreign Direct Investment (FDI) increased constantly to $60.97 billion in the financial year 2018 (FY18) from $45.15 billion in Financial year 2015 (FY15). Investors also took note of Commerce and Industry Minister Suresh Prabhu’s statement that huge investment opportunities exist in India in various sectors including construction for Turkish companies. The rise in the rupee was also supported by the US unit's weakness against some currencies overseas. On the global front, U.S. dollar slid lower against a currency basket on Tuesday ahead of this week's Federal Reserve meeting while the yen remained supported amid concerns over the outlook for global growth.

Finally, the rupee ended at 70.44, Rs 1.12 stronger from its previous close of 71.56 on Monday. The currency touched a high and low of 71.35 and 70.44 respectively. The reference rate for the dollar stood at 71.19 and for Euro stood at 80.75 on December 18, 2018. While the reference rate for the Yen stood at 63.21, the reference rate for the Great Britain Pound (GBP) stood at 89.88.

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