Indian rupee, after making a weak start, recouped some of its losses and ended marginally strong on Wednesday on account dollar selling by banks and exporters. Some gains in the domestic equity market also added to the rupee gains. Further, sentiments got some upbeat after India Ratings and Research stated that the sharp fall in retail inflation in August has increased the chances of monetary easing by the central bank. Retail inflation, based on Consumer Price Index (CPI) eased at 5.05% in August from 6.07% in July, on account of decline in food prices especially vegetables. However, dollar strengthened against other currencies overseas capped the rupee's gains. On the global front, yen slipped to a one-week low against the dollar on Wednesday, after a report stated that the Bank of Japan is considering further monetary easing steps, including taking interest rates deeper into negative territory.
Finally the rupee ended at 66.89, stronger by 3 paise from its previous close of 66.92 on Monday. The currency touched a high and low of 67.03 and 66.81 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 66.96 and for Euro stood at 75.21 on September 14, 2016. While the RBI’s reference rate for the Yen stood at 64.83, the reference rate for the Great Britain Pound (GBP) stood at 88.49.The reference rates are based on 12 noon rates of a few select banks in Mumbai.
