Indian rupee appreciated against US dollar on Friday due to increased selling of the American currency by banks and exporters. Some support also came from IMF’s statement that India’s strong reform push in 2016 is welcome and should continue apace. Adoption of the goods and services tax is poised to boost India’s medium-term growth. It added that as shown by India, progress on reforms could ignite business investment (including already strong FDI inflows), further boosting domestic demand. However, dollar firmed up against some global currencies overseas ahead of a key US jobs report, weighed on the rupee. On the global front, British pound fell sharply on growing concerns over the terms of a break from the European Union following comments by the government earlier this week the formal move would come by March of next year.
Finally, the rupee ended at 66.67, 2 paise stronger from its previous close of 66.69 on Thursday. The currency touched a high and low of 66.86 and 66.67 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 66.78 and for Euro stood at 74.27 on October 7, 2016. While the RBI’s reference rate for the Yen stood at 64.30, the reference rate for the Great Britain Pound (GBP) stood at 83.23.The reference rates are based on 12 noon rates of a few select banks in Mumbai.
