Indian rupee, after making a good start, gave away most of its gains and concluded marginally higher against dollar on sustained dollar selling by banks and exporters, on Tuesday. Sentiments remained up-beat with report that the core sector in the country grew 5% in March, a significant rise from the 1% growth registered in February on account of a favourable base effect. Also, core sector growth for the year ended March hit a five-year high, registering a growth rate of 4.5% over the previous year. Some support also came with Prime Minister Narendra Modis assertion that India was never a more promising investment destination than it is today. He said that today, Indian economy is the fastest growing major economy in the world. In addition to maintaining this pace, our focus is to remove the inefficiencies from the system. On the global front, Dollar weakened against most of the currencies overseas, ahead of the outcome of two day US Federal Reserve meeting. The central bank is scheduled to release its policy decision on Wednesday. Fed is expected to hold interest rates steady at its meeting this week as it pauses to parse more economic data but may hint that it is on track for a rate hike in June.
Finally, the rupee ended at 64.21, 4 paise stronger from its previous close of 64.25 on Friday. The currency touched a high and low of 64.23 and 63.99 respectively. The Reserve Bank of Indias (RBI) reference rate for the dollar stood at 64.20 and for Euro stood at 70.04 on May 02, 2017. While the RBIs reference rate for the Yen stood at 57.27, the reference rate for the Great Britain Pound (GBP) stood at 82.69. The reference rates are based on 12 noon rates of a few select banks in Mumbai.