Indian rupee continued its unabated run on Wednesday and climbed to over 4 months high, on increased selling of the American currency by banks and exporters. The domestic currency continued being aided by strong foreign fund inflows and weakness of the dollar against other currencies overseas after data showed activity in the US service sector slowed sharply last month. The initial gain in the equity markets too supported the rupee to some extent, however they lost their momentum but rupee continued its bullish trend for the sixth consecutive session. Gains in the Asian currencies markets also boosted sentiments, while on the global front the dollar fell to its lowest in more than a week against the yen on Wednesday as subdued US data made an interest rate increase this month by Federal Reserve unlikely.
Finally the rupee ended at 66.37, stronger by 15 paise from its previous close of 66.52 on Tuesday. The currency touched a high and low of 66.39 and 66.32 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 66.36 and for Euro stood at 74.69 on September 7, 2016. While the RBI’s reference rate for the Yen stood at 65.46, the reference rate for the Great Britain Pound (GBP) stood at 89.03.The reference rates are based on 12 noon rates of a few select banks in Mumbai.
