Snapping its two-day losing streak Indian Rupee bounced back on Monday, amid positive economic data and on persistent dollar sales by exporters and state run banks in view of its weakness overseas against the basket of other major currencies. The rupee appreciated ahead of the domestic consumer price inflation data scheduled later for the day, and the two-day US Federal Reserve policy review starting September 16. The domestic currency looked strong from the very beginning and was supported by the gains in local equity markets. The sentiments up-beat after Wholesale Price Index (WPI) inflation declined to (-) 4.95 per cent in August from (-) 4.05 per cent in July which was primarily on account of a sharp cooling in fuel costs. On the global front, US dollar was weaker against yen and euro on Monday, as investors are keeping a close eye on the policy meeting of the Federal Reserve as investors bet interest rates would be kept at their record lows until at least December.
Finally, the rupee ended at 66.33, 20 paise stronger from its previous close of 66.53 on Friday. The currency touched a high and low of 66.49 and 66.30 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 66.37 and for Euro stood at 75.32 on September 14, 2015. While, the RBI’s reference rate for the Yen stood at 55.18, the reference rate for the Great Britain Pound (GBP) stood at 102.5429. The reference rates are based on 12 noon rates of a few select banks in Mumbai.
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