Rupee gains 9 paise post RBI's MSS hike announcement

India Infoline News Service | Mumbai | December 02, 2016 13:43 IST

The India rupee is trading higher after RBI has revised MSS ceiling to Rs 6 lakh crore.

The India rupee is trading higher after RBI has revised MSS Ceiling to Rs 6 lakh crore. The rupee was trading lower in late morning deals on bouts of dollar demand from banks and importers amid bearish domestic equities. However, a weak opening in domestic equity market restricted the gains in rupee. Currently, the rupee is trading higher by 9 paise at 68.25/$.

On the global front, the dollar dropped early Asian trade against its peers as investors were cautious ahead of a looming US jobs report that could set the tone in coming days.

The Nikkei/ Market Manufacturing Purchasing Managers' Index fell to 52.3 in November from October's 54.4, its biggest month-on-month decline since March 2013.Indian economy regained momentum during the second quarter of this fiscal year, with GDP growing at 7.3% (yoy), higher than the reading of 7.1% during the prior quarter. India's infrastructure output accelerated to its fastest growth in half a year rising 6.6pc yoy in October.

Euro will remain in focus, as markets turn cautious ahead of Italian referendum this weekend. Likely rejection of the constitutional reform will prompt Italian PM to resign and can leave the country in to a political mess. On the economic side, the country already has the highest debt-GDP ratio in Europe after Greece.

The local unit hit a high of 68.41/$ and a low of 68.52/$ today.

The Reserve Bank of India’s Reference Rate for the US Dollar was Rs 68.37 as on December 1, 2016 while for the Euro it was 72.62. The RBI’s reference rate for the Yen stood at 60.01; reference rate for the Great Britain Pound (GBP) stood at 85.6992.


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