Rupee (INR) Jumps To Nearly 3-Month High Against Dollar (USD) Today

The rupee struggled to hold on to early strong gains and eventually ended the day almost flat at 64.38 against the US dollar amid a caution ahead of the RBI policy decision

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Rupee (INR) Jumps To Nearly 3-Month High Against Dollar (USD) Today

The rupee (INR) hit a high of 64.23 against the US dollar in the intraday trading

The rupee struggled to hold on to early strong gains and eventually ended the day almost flat at 64.38 against the US dollar amid a caution ahead of the RBI policy decision. The Indian currency soared to a fresh 3-month peak of 64.21 in early trade before retreating sharply. The Reserve Bank's two-day monetary policy review kicked off today, though the apex bank is widely expected to keep policy rates unchanged.

INR Vs USD  - 5 Things To Know


The rebound in India's second quarter GDP data and an acceleration in manufacturing activity has supported the rupee in recent days. India's factory activity quickened in November at the fastest pace since the notes ban, driven by a surge in new orders, a business survey found.

The Reserve Bank of India will announce its Fifth Bi-monthly Monetary Policy of 2017-18 tomorrow. Analysts widely expect the central bank to remain on pause, given upside risks to inflation as well as the fiscal deficit.

Global rating agency Fitch Ratings on Monday cut the country's GDP growth forecast for the current fiscal to 6.7 per cent from the earlier projected 6.9 per cent but it expects GDP growth to pick up in the next two years on back of gradual implementation of the structural reform agenda and higher real disposable income. Reversing a five-quarter slide in GDP growth, Indian economy bounced back from a three-year low to expand by 6.3 per cent in July-September as manufacturing revved up and businesses adjusted to the new GST tax regime.

Inflation still running at low levels on muted food prices and rupee appreciating quite sharply against the US dollar since the beginning of this year give headroom for the RBI to keep interest rates quite low in order to help lift the economy, Fitch added.

Though the US dollar has gained in recent days against a basket of other currencies on optimism about the tax package, the gains have been capped by political concerns in Washington, analysts said. (With Agency Inputs)

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