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Rupee strengthens against US dollar on Thursday
Dec-05-2019

Indian rupee strengthened against the US dollar on Thursday ahead of Reserve Bank of India's (RBI) monetary policy decision, wherein the central bank is expected to cut interest rates by 25 basis points (bps) in a bid to support economic growth which has been witnessing a steady slowdown. Rupee improved further by renewed hopes about US-China trade deal after reports showed the US and China are moving closer to agreeing on the amount of tariffs to be rolled back in a ‘phase one’ trade deal. However, sustained foreign fund outflows weighed on the domestic currency and restricted its gains. Foreign institutional investors (FIIs) sold shares worth Rs 781.06 crore on Wednesday, exchange data showed. On the global front, the US dollar held higher as upbeat trade comments from US President Donald Trump cheered the market, while New Zealand's softer-than-expected banking reforms pushed the kiwi to a four-month high.

The partially convertible currency is currently trading at 71.49, stronger by 4 paise from its previous close of 71.53 on Wednesday. The currency touched a high and low of 71.5525 and 71.4475 respectively. The reference rate for the dollar stood at 71.60 and for Euro stood at 79.29 on December 03, 2019. While the reference rate for the Yen stood at 65.59, the reference rate for the Great Britain Pound (GBP) stood at 92.66.

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