Indian rupee strengthened against dollar in early trades on Wednesday after the Reserve Bank cut its policy interest rate by 50 basis points to 4-year low from 7.25 percent to 6.75 percent yesterday. The central bank mentioned that the prevalent conditions meet the criteria for further monetary easing, manifested by sharp fall in inflationary pressure, contained food prices and delay in the rate hike by US Federal Reserve. Besides, a higher opening in domestic equity market and the dollar’s weakness against other currencies overseas too has supported the domestic currency. On the global front, demand for the safe-haven yen eased early on Wednesday as global stocks steadied from a rout and some semblance of calm returned to markets, but traders said month-end and quarter-end flows meant that volatility is likely to remain a feature.
The partially convertible currency is currently trading at 65.76, stronger by 19 paise from its previous close of 65.95 on Tuesday. The currency touched a high and low of 65.87 and 65.7075 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 66.18 and for Euro stood at 74.60 on September 29, 2015. While, the RBI’s reference rate for the Yen stood at 55.42, the reference rate for the Great Britain Pound (GBP) stood at 100.4611. The reference rates are based on 12 noon rates of a few select banks in Mumbai.
| Date | 1US$ | 1GBP |
| September 29, 2015 | 66.1843 | 100.4611 |
| September 28, 2015 | 66.0805 | 100.3168 |
(RBI-Reference Rate)
