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Rupee strengthens on increased selling of American currency by exporters and banks

20 Apr 2016 Evaluate

Indian rupee strengthened against dollar in early deals on Wednesday on account of increased selling of American currency by exporters and banks and a higher opening in the domestic equity market. Besides, a fall in the dollar against major world currencies globally after data showed new US home construction slumped in March to the lowest pace since October too strengthened domestic currency. Rupee improved further after India’s trade deficit narrowed to a five-year low. Reports showed that India's trade deficit narrowed for the third straight month in March to $5.07 billion, the lowest in five years, as imports shrank at a faster pace than exports. Forex market was shut on Tuesday on account of ‘Mahavir Jayanti’.

The partially convertible currency is currently trading at 66.33, stronger by 22 paise from its previous close of 66.55 on Monday. The currency touched a high and low of 66.3350 and 66.2225 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 66.66 and for Euro stood at 75.25 on April 18, 2016. While the RBI’s reference rate for the Yen stood at 61.73, the reference rate for the Great Britain Pound (GBP) stood at 94.3928. The reference rates are based on 12 noon rates of a few select banks in Mumbai.

Date1US$1GBP
April 18, 201666.666394.3928
April 13, 201666.429394.6684
(RBI-Reference Rate)

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