Indian rupee appreciated for second consecutive session on Wednesday due to increased selling of the American currency by exporters and banks. Local currency got some support with Steel Minister Chaudhary Birender Singh’s statement that India is seen as the sole bright spot in a troubled global economy. Minister has also said that nearly $26 billion has flowed into the country this year so far since we opened the floodgates for FDI across sectors. However, losses in the local equity markets capped the rupee gains. On the global front, dollar fell against its peers after a core U.S. inflation gauge rose less than forecast in September, suggesting the pace of interest-rate increases by the Federal Reserve will be gradual.
Finally, the rupee ended at 66.67, 6 paise stronger from its previous close of 66.73 on Tuesday. The currency touched a high and low of 66.84 and 66.65 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 66.71 and for Euro stood at 73.21 on October 19, 2016. While the RBI’s reference rate for the Yen stood at 64.40, the reference rate for the Great Britain Pound (GBP) stood at 81.78.The reference rates are based on 12 noon rates of a few select banks in Mumbai.
