Snapping its two-days losing streak, Indian rupee bounced back against dollar on Friday, on fresh selling of dollar by banks and exporters, amid gains in Asian currencies markets. Besides, gains in equity market after four losing sessions also supported the rupee sentiments. Investors got some support with the Finance Ministry statement that the domestic economy has 'inherent resilience' to withstand global volatility triggered by China fears and the RBI and government are keeping a close watch. Furthermore, the sentiment got support from the report that government has agreed to accept demands set by the Congress party to back a landmark tax reform, raising hopes a political standoff that blocked the measure throughout last year might be resolved. On the global front, dollar rose more than half a per cent against both the euro and yen on Friday as the measures taken by China to ease this week’s market turmoil helped steady investors’ nerves over market moves there and China’s influence on global financial stability.
Finally, the rupee ended at 66.64, 29 paise stronger from its previous close of 66.93 on Thursday. The currency touched a high and low of 66.77 and 66.59 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 66.66 and for Euro stood at 72.52 on January 08, 2016. While, the RBI’s reference rate for the Yen stood at 56.32 the reference rate for the Great Britain Pound (GBP) stood at 97.4501. The reference rates are based on 12 noon rates of a few select banks in Mumbai.
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