Snapping its three day losing streak Indian rupee bounced back against dollar on Friday due to selling of the greenback by banks and exporters. The domestic currency was looking strong from the very beginning and was supported by the surge in the equity markets. Further, sentiments also got a boost after a government report showed that India’s fiscal deficit stood at Rs 4.88 lakh crore during April-December or 87.9 percent of the full-year target, indicating an improvement in its finances. On the global front, yen tumbled against the dollar and euro on Friday after the Bank of Japan announced a surprise negative interest rate policy, leading to forecasts that the greenback will hit 140 yen within two years.
Finally, the rupee ended at 67.79, 43 paise stronger from its previous close of 68.22 on Thursday. The currency touched a high and low of 68.12 and 67.78 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 67.87 and for Euro stood at 74.06 on January 28, 2016. While the RBI’s reference rate for the Yen stood at 56.26, the reference rate for the Great Britain Pound (GBP) stood at 97.7554. The reference rates are based on 12 noon rates of a few select banks in Mumbai.
