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

29 Jun 2016 Evaluate

Indian rupee strengthened against the dollar in early deals on Wednesday on increased selling of the US currency by exporters and banks. Besides, weakness of the dollar against other currencies overseas gave the rupee more muscle. Furthermore, a higher opening in the domestic equity market ensured the uptrend picked up momentum. The rupee tracked stronger Asian currencies, following gains across the US and Europe as investors looked for bargains after the Brexit sell-off. On the global front, the pound and the euro hovered above their post-Brexit lows on Wednesday as a brief short-covering spell lent a semblance of stability to the battered European currencies, though they remained hampered by longer term uncertainty.

The partially convertible currency is currently trading at 67.83, stronger by 12 paise from its previous close of 67.95 on Tuesday. The currency touched a high and low of 67.8475 and 67.7550 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 67.88 and for Euro stood at 75.06 on June 27, 2016. While the RBI’s reference rate for the Yen stood at 66.69, the reference rate for the Great Britain Pound (GBP) stood at 90.1739. The reference rates are based on 12 noon rates of a few select banks in Mumbai.

Date1US$1GBP
June 28, 2016 67.886790.1739
June 27, 2016 67.900090.9113
(RBI-Reference Rate)

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