Indian rupee, after making a weak start, recouped substantial ground and ended stronger against dollar on Monday despite weak local equities. Local currency got some support with Niti Aayog Vice-Chairman Arvind Panagariya’s statement that a good monsoon, reforms and timely decision making at the Centre will definitely push India’s growth beyond the 8 per cent mark in subsequent quarters of this fiscal. However, investors remained cautious ahead of the first US presidential debate. On the global front, yen strengthened against dollar after a speech by Bank of Japan Governor Haruhiko Kuroda stating that the bank is willing to use every possible tool, if necessary, to achieve its price stability objective. Kuroda said that there is no better opportunity than now to completely get out of deflation.
Finally, the rupee ended at 66.61, 5 paise stronger from its previous close of 66.66 on Friday. The currency touched a high and low of 66.78 and 66.61 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 66.71 and for Euro stood at 74.88 on September 26, 2016. While the RBI’s reference rate for the Yen stood at 66.13, the reference rate for the Great Britain Pound (GBP) stood at 86.47.The reference rates are based on 12 noon rates of a few select banks in Mumbai.
