Indian rupee bounced back from last session’s losses and ended higher against greenback on Tuesday due to dollar selling by banks and exporters amid positive closing of domestic equity markets. Investors got some encouragement with the Reserve Bank of India stating that the near-term growth outlook for India seems brighter than last fiscal and the economy is likely to expand at 7.6 percent in 2016-17. While fresh foreign fund inflows supported the rupee, strength in the dollar against some currencies overseas capped the gains. On the global front, dollar hovering near a two-week high against a some basket of currencies, with investors focused on the next set of U.S. data to see whether it supports expectations that the Federal Reserve will raise interest rates soon.
Finally the rupee ended at 67.03, stronger by 12 paise from its previous close of 67.15 on Monday. The currency touched a high and low of 67.12 and 67.02 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 67.09 and for Euro stood at 74.94 on August 30, 2016. While the RBI’s reference rate for the Yen stood at 65.61, the reference rate for the Great Britain Pound (GBP) stood at 87.69.The reference rates are based on 12 noon rates of a few select banks in Mumbai.
