Indian rupee strengthened a tad on Tuesday on account of dollar sales by custodian banks acting on behalf of foreign funds. Additionally, strength of other Asian currencies against dollar and splendid gains of local equity markets, which recorded second highest closing levels, also supported sentiment. Though greenback demand from oil importers and stand-off between Russia and the West which could spark uncertainty in global markets, kept the local currency’s gains in check. On the global front, dollar rose to its strongest against the euro in almost six months on Tuesday ahead of U.S. inflation numbers for June which should add to a picture of growing divergence between the U.S. and European economies
Finally the rupee ended at 60.25, stronger by 4 paise from its previous close of 60.29 on Monday. The currency touched a high and low of 60.28 and 60.18 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 60.23 and for Euro stood at 81.44 on July 22, 2014. While, the RBI’s reference rate for the Yen stood at 59.32, the reference rate for the Great Britain Pound (GBP) stood at 102.8650. The reference rates are based on 12 noon rates of a few select banks in Mumbai.
