Indian rupee appreciated for second consecutive session on Wednesday on dollar selling by exporters and banks, while gains in local equities also influenced the rupee sentiment. Some support also came with NITI Aayog Vice Chairman Arvind Panagariya statement that a good monsoon can help add a percentage point to India’s GDP growth in the current fiscal, from 7.6% in 2015-16. However, investors remained cautious ahead of the US Fed meet outcome later in the day. The US Fed is likely to hold the rate, but the comments will have an influential impact on the liquidity standpoint and for any chance of an increase in the interest rate by Dec-2016. On the global front, yen jumped against the dollar on a report that Japanese Prime Minister Shinzo Abe will announce details of a $265 billion stimulus package to reflate the Japanese economy.
Finally, the rupee ended 67.15, 12 paise stronger from its previous close at 67.27 on Tuesday. The currency touched a high and low of 67.34 and 67.14 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 67.24 and for Euro stood at 73.89 on July 27, 2016. While the RBI’s reference rate for the Yen stood at 63.57, the reference rate for the Great Britain Pound (GBP) stood at 88.30.The reference rates are based on 12 noon rates of a few select banks in Mumbai.
