Indian rupee, after making a good start, gave away most of its gains to end marginally higher against dollar on Wednesday, driven by weakening of the greenback in overseas markets. Local currency got some support with the government data showing that India’s retail inflation based on Consumer Price Index (CPI) eased marginally to 3.15% in the month of July 2019, on the back of softening fuel and light prices, even as inflation in the overall food basket moved up. CPI was 3.18% in June 2019, while it stood at 4.17% in July 2018. Also, inflation stayed below the RBI’s medium-term target of 4% for an eleventh straight month. Moreover, firm domestic equity markets also supported the local unit. On the global front, pound rose against its major counterparts on Wednesday, following the release of a data showing an acceleration in U.K. consumer price inflation in July.
Finally, the rupee ended at 71.27, 13 paise stronger from its previous close of 71.40 on Tuesday. The currency touched a high and low of 71.35 and 70.85 respectively. The reference rate for the dollar stood at 71.23 and for Euro stood at 79.75 on August 13, 2019. While the reference rate for the Yen stood at 67.66, the reference rate for the Great Britain Pound (GBP) stood at 85.89.