Indian rupee ended substantially stronger against dollar on last day of the week on sustained selling of greenback by banks and exporter, tracking firm cues from other Asian currency markets. This was the third day of consecutive gains for the domestic currency. Indian currency looked strong from the very beginning and was supported by the gains in the local equity markets. Sentiments got boost with the report that Indian manufacturing activity surged to a three-month high in June, driven by stronger demand. The Nikkei/Markit Manufacturing Purchasing Managers’ Index (PMI) rose to 51.7 in June from May’s 50.7, above the 50 mark that separates growth from contraction. On the global front, yen has higher against the dollar on Friday on speculation the Bank of Japan will expand its already massive stimulus programme, while the greenback was also hurt by waning US interest rate hike expectations.
Finally, the rupee ended 67.32, 20 paise stronger from its previous close at 67.52 on Thursday. The currency touched a high and low of 67.49 and 67.31 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 67.44 and for Euro stood at 74.74 on July 01, 2016. While the RBI’s reference rate for the Yen stood at 65.67, the reference rate for the Great Britain Pound (GBP) stood at 89.5482. The reference rates are based on 12 noon rates of a few select banks in Mumbai.
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