Recovering from previous session losses, following India’s surgical strike on Pakistan based terrorist camps in the aftermath of Uri attack, Indian rupee ended considerably stronger against US dollar as the government tries to contain military tensions. Domestic currency got some support on speculation that slowing inflation will allow new Reserve Bank of India (RBI) governor Urjit Patel to cut interest rates at next week’s monetary policy review. Increased foreign fund inflows also supported the rupee. On the global front, euro lost ground broadly on Friday as concerns about the health of Deutsche Bank weighed on the single currency and undermined risk appetite across global markets.
Finally, the rupee ended at 66.60, 26 paise stronger from its previous close of 66.86 on Thursday. The currency touched a high and low of 66.80 and 66.56 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 66.66 and for Euro stood at 74.75 on September 30, 2016. While the RBI’s reference rate for the Yen stood at 66.05, the reference rate for the Great Britain Pound (GBP) stood at 86.42.The reference rates are based on 12 noon rates of a few select banks in Mumbai.
