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Rupee seen a winner in US-China trade thaw, but gains may be slow

Upcoming Lok Sabha polls, rising oil prices, RBI's efforts on stable exchange rate may drag down upward swing

Rupee seen a winner in US-China trade thaw, but gains may be slow
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Anup Roy Mumbai
With the United States and China sounding a reconciliatory track on trade talks, currencies of emerging markets, including the rupee, are poised to gain strength. However, the imp­ending general elections, rising oil prices and the Reserve Bank of India’s (RBI’s) efforts to maintain a stable exchange rate regime, may drag down the possible upward swing.  

US President Donald Trump delayed the deadline for imposing tariffs on Chinese products worth $200 billion, citing “substantial progress” during trade talks between the two nations. The Chinese stock jumped and yuan strengthened as a result. 

The yuan strengthened to 6.68 a dollar, from 6.79

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First Published: Feb 25 2019 | 10:21 PM IST

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