Indian rupee strengthened against dollar in morning deals on Thursday due to sustained dollar selling by banks and exporters in view of sustained foreign capital inflows into domestic equities, and a positive opening at domestic stocks markets. The rupee improved further as the dollar slipped against other currencies overseas as the US Federal Reserve left interest rates unchanged at its policy meet. The rupee also benefited from the Cabinet’s approval to the goods and services tax (GST). The Union cabinet approved key changes to the Constitution amendment bill for GST, doing away with a 1% additional levy on supply of goods, and proposing full compensation to states for five years for revenue loss arising from transition to GST. On the global front, the yen gained on Thursday on speculation that the Bank of Japan won't deliver radical stimulus this week, while the dollar took a step back after the US Federal Reserve stopped short of signaling a near-term rate rise.
The partially convertible currency is currently trading at 67.05, stronger by 10 paise from its previous close of 67.15 on Wednesday. The currency touched a high and low of 67.0650 and 67.00 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.
| Date | 1US$ | 1GBP |
| July 27, 2016 | 67.2362 | 88.3013 |
| July 26, 2016 | 67.3680 | 88.1712 |
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