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Rupee continues upward momentum for second straight session
Dec-05-2019

Indian rupee continued its upward momentum for the second day on Thursday on persistent selling of the American currency by exporters. Traders took some support with Reserve Bank Governor Shaktikanta Das’ statement that there is good coordination between the fiscal and monetary policies so far, in addressing growth concerns and that the central bank is not worried about government missing fiscal deficit target. Besides, dollar’s weakness against some currencies overseas supported the rupee. However, gains remain capped as anxiety remained among the traders after Reserve Bank of India (RBI) kept the repo rate unchanged at 5.15 percent and continue with its accommodative stance. It also sharply lowered the growth forecast for the current financial year to 5 percent from the earlier estimate of 6.1 percent on account weak domestic and external demand. On the global front, dollar retreated on Thursday towards one-month lows against a basket of currencies, pressured by a slew of weaker-than-expected economic data and this week's robust performance by the euro and the British pound.

Finally, the rupee ended at 71.29, 24 paise stronger from its previous close of 71.53 on Wednesday. The currency touched a high and low of 71.66 and 71.28 respectively. The reference rate for the dollar stood at 71.78 and for Euro stood at 79.50 on December 04, 2019. While the reference rate for the Yen stood at 66.11, the reference rate for the Great Britain Pound (GBP) stood at 93.27. 

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