Indian rupee continuing its good recovery run, strengthened on Tuesday, supported by increased dollar selling by exporters. The domestic currency made a flat but positive start and there was some cautiousness ahead of RBI's policy review also because of rise in dollar against some overseas currencies. But the rupee regained momentum after the RBI maintained a status quo and kept its policy rates unchanged. The policy repo rate under the liquidity adjustment facility (LAF) was kept unchanged at 8.0 per cent. Traders even ignored the weakness in the local equity markets. In the global markets dollar advanced against a basket of major currencies ahead of an employment data this week, which may show US added jobs for the 10th consecutive month in November.
Finally the rupee ended at 61.89, stronger by 13 paise compared to its previous close of 62.02 on Monday. The currency touched a high and low of 62.02 and 61.86 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 61.92 and for Euro stood 77.21 on December 2, 2014. While, the RBI’s reference rate for the Yen stood at 52.31, the reference rate for the Great Britain Pound (GBP) stood at 97.3902. The reference rates are based on 12 noon rates of a few select banks in Mumbai.
