The rupee strengthened substantially on Wednesday as dealers sold dollars on expectations that interest rates in the US were unlikely to rise as quickly as expected earlier after U.S. Federal Reserve Chair Janet Yellen suggested that a rate increase is not likely for at least the next couple of meetings and that the first hike would not necessarily come after the Fed removes the word 'patient' from its forward guidance. However, month-end dollar demand from state run banks and bit of cautiousness ahead of Budget 15-16 limited further gains of Indian currency. On the global front, dollar fell against a basket of currencies after Federal Reserve Chair Janet Yellen suggested the central bank would not be rushed into kicking off the U.S. interest rate tightening cycle.
Finally the rupee ended at 61.98, stronger by 22 paise from its previous close of 62.20 on Tuesday. The currency touched a high and low of 62.07 and 61.95 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 62.04 and for Euro stood at 70.42 on February 25, 2015. While, the RBI’s reference rate for the Yen stood at 52.28, the reference rate for the Great Britain Pound (GBP) stood at 96.0298. The reference rates are based on 12 noon rates of a few select banks in Mumbai.
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