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Rupee ends strong amid gains in equity market

10 Oct 2016 Evaluate

Indian rupee appreciated for second consecutive session on Monday due to selling of American currency by banks and exporters. The domestic currency looked strong from the very beginning and gains in local equities markets also supported the rupee. Sentiment got up-beat with NITI Aayog Vice-Chairman Arvind Panagariya’s statement that India can become a $10 trillion economy in the next 15 years, from the existing $2 trillion, like China did in last one and a half decade. Weakness of dollar against the some major currencies overseas after weaker-than-expected US jobs data also supported the local currency. Meanwhile, traders turned cautious ahead of macro data scheduled to be announced through the week starting with factory output numbers later in the day. On the global front, yen slipped against dollar on Monday as the Bank of Japan may push back inflation target date. 

Finally, the rupee ended at 66.53, 14 paise stronger from its previous close of 66.67 on Friday. The currency touched a high and low of 66.61 and 66.53 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 66.59 and for Euro stood at 74.40 on October 10, 2016. While the RBI’s reference rate for the Yen stood at 64.56, the reference rate for the Great Britain Pound (GBP) stood at 82.48.The reference rates are based on 12 noon rates of a few select banks in Mumbai.

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