Indian rupee strengthened substantially against dollar on Monday due to increased selling of dollar by banks and exporters, amid mix cues from Asian currency markets. The domestic currency was looking strong from the very beginning, but somewhere the gain was capped on account of weakness in the local equity markets. Meanwhile, investors were awaiting the bi-monthly policy, which the Reserve Bank of India (RBI) will announce on Tuesday, which is widely expected to leave interest rates unchanged. On the global front, dollar was high on Monday, having hit more than three-week lows against a basket of major currencies after a poor employment report prompted investors to rule out the chance of a hike in U.S. interest rates in June.
Finally, the rupee ended at 67.00, 26 paise stronger from its previous close at 67.26 on Friday. The currency touched a high and low of 67.02 and 66.86 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 66.96 and for Euro stood at 75.94 on June 06, 2016. While the RBI’s reference rate for the Yen stood at 62.60, the reference rate for the Great Britain Pound (GBP) stood at 96.1700. The reference rates are based on 12 noon rates of a few select banks in Mumbai.
