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Rupee appreciates for fourth consecutive session; posts biggest single day gain in two months

09 Oct 2014 Evaluate

Indian rupee, extending its appreciating streak to fourth consecutive session, posted its biggest single day gain in nearly two months on Thursday after Fed's September meeting minutes released late on Wednesday suggested it was in no hurry to raise rates, which reducing the safe haven appeal of American currency, sent all the emerging markets' currencies higher. Besides, selling of the American unit by exporters, easing global crude prices and hefty gains of local equities also buoyed the sentiment. However, caution ahead of August factory output data, which is due to release on Friday, weighed on the sentiment. On the global front, dollar fell to a three-week low against the yen on Thursday, as investors cut favourable bets after minutes of the Federal Reserve's last meeting prompted many to push out expectations for the likely timing of an interest rate rise.

Finally the rupee ended at 61.05, stronger by 35 paise from its previous close of 61.40 on Wednesday. The currency touched a high and low of 61.12 and 60.90 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 61.03 and for Euro stood at 77.74 on October 08, 2014. While, the RBI’s reference rate for the Yen stood at 56.57, the reference rate for the Great Britain Pound (GBP) stood at 98.6355. The reference rates are based on 12 noon rates of a few select banks in Mumbai.

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