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Rupee ends tad higher on Friday
Nov-16-2018

Indian rupee trimmed most of its early gains but still managed to end higher against the American currency on Friday, on continued dollar selling by banks and exporters. Sentiments remained positive with Fitch indicating that India’s strong growth outlook continues to stand out among peers and upgraded its real GDP growth forecast at 7.8% for the current financial year ending March 2019 (2018-19) from 7.3% forecasted earlier in April this year. The domestic unit also found support from strong gains in local equity markets along with dollar's weakness against some currencies overseas. However, gains were capped as anxiety remained among the traders with a report showing that the trade deficit for the month of October 2018 widened to $17.13 billion v/s $13.98 billion in September on account of import growth again picked up. The deficit widened despite a decline of 42.9% in gold imports to $1.68 billion. Imports during the month also rose by 17.62% to $44.11 billion, leading to widening of trade deficit. On the global front, British pound clawed back losses on Friday as Prime Minister Theresa May clung to her Brexit plan after the resignation of key ministers threw the divorce deal into doubt.

Finally, the rupee ended at 71.93, 4 paise stronger from its previous close of 71.97 on Thursday. The currency touched a high and low of 71.99 and 71.71 respectively. The reference rate for the dollar stood at 71.80 and for Euro stood at 81.46 on November 16, 2018. While the reference rate for the Yen stood at 63.37, the reference rate for the Great Britain Pound (GBP) stood at 91.92. The reference rates are based on 12 noon rates of a few select banks in Mumbai. 

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