Rupee gains 8 paise against dollar in early trade

The rupee firmed up by another 8 paise to 64.43 against the US dollar on Thursday on increased selling of the American currency by exporters and banks even as India's economic growth slowed to 7.1% in 2016-17.

India's economic growth slowed to 7.1% in 2016- 17, the year in which 87% of the currency was demonetised, despite a very good showing by the agricultural sector.

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The Gross Domestic Product (GDP) was 6.1% in the January-March quarter, the immediate three months after the demonetisation was affected on November 9, 2016.

Forex dealers said that besides sustained selling of the greenback by banks and exporters, the dollar's weakness against some currencies overseas backed up the rupee.

On Wednesday, the local currency had recovered by 15 paise to close at 64.51 on fresh selling of the American currency by banks and exporters.

Meanwhile, the benchmark BSE Sensex was down 75.33 points, or 0.24%, at 31,070.47 in early trade. 

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