Rupee Gains For 6th Day Post RBI Board Meeting

Rupee Gains For 6th Day Post RBI Board Meeting

20 Nov 2018 05:39 PM
 
Indian rupee logged sixth consecutive sessions of gains against the dollar and rose to a fresh 11-week high, as outcome of the Reserve Bank of India’s crucial board meeting signaled a compromise between the government and the central bank.

The rupee settled at 71.45 to a dollar, highest since Sep. 3, against 71.64 at previous close. It traded in 71.28-71.52 to dollar band today. The currency also posted its longest winning streak in over one year.

The Reserve Bank of India’s nine-hour-long board meeting yesterday ended with the central bank and New Delhi reaching a compromise. The board decided that issue of the health of banks under prompt corrective action framework will be looked into by the RBI’s board for financial supervision and decided on a restructuring scheme for micro, small and medium sized enterprises.

 The dollar index was trading 0.1% higher at 96.28, after dropping to a two-week low yesterday amid doubts over how much the Federal Reserve would raise interest rates further. The questions related to the pace of rate increases came amid recent comments by Fed Vice Chairman Richard Clarida that short term interest rates in the world’s largest economy were close to neutral.
 
The benchmark Brent crude oil price fell 0.6% at $66.38 per barrel, heading for its first decline in five sessions on supply concerns, aiding sentiments for rupee. The Organization of the Petroleum Exporting Countries will meet on Dec. 6 to discuss supply cuts. India imports 80% of its oil needs.

 

 


Date : Nov-2018

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