The Indian rupee on Tuesday strengthened against the US dollar on fresh selling of the greenback by banks and exporters on hopes of fresh foreign capital inflows into equity markets and after the RBI left its policy rates unchanged stating that more foreign investors will be allowed in the Indian debt market. RBI governor Raghuram Rajan further said that the central bank will allow conversion of foreign investors’ debt limit to be denominated in rupee, instead of dollars. On the global front, dollar edged lower against the basket of major currencies, as markets awaited the release of US nonfarm payrolls which will be held on Friday for indicating whether or not the Federal Reserve will raise interest rates in September.
Finally, the rupee ended at 63.75, 29 paise stronger from its previous close of 64.04 on Monday. The currency touched a high and low of 64.09 and 63.74 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 63.93 and for Euro stood at 70.04 on August 04, 2015. While, the RBI’s reference rate for the Yen stood at 51.59, the reference rate for the Great Britain Pound (GBP) stood at 99.8226. The reference rates are based on 12 noon rates of a few select banks in Mumbai.
