Indian rupee ended marginally stronger against the US dollar on Monday on fresh selling of American currency by banks and exporters. Local currency got some support with Prime Minister Narendra Modi’s statement that the Goods and Services Tax law will boost domestic demand, create more opportunities for domestic business and drive job creation. He said that India is the fastest growing major economy and one of the most attractive destinations for FDI adding that indeed, they stand out as a bright spot in the global economy. Further, gains in the domestic equity market too supported the rupee. However, dollar strengthened against basket of currencies, buoyed by expectations that the US Federal Reserve will raise interest rates this year and by a receding chance of Donald Trump becoming US president capped the rupee's gains. On the global front, Euro rebounds from 7-month low against dollar after fresh data showed economic growth in the currency union is the strongest it’s been all year, spurring chatter the European Central Bank could taper its easing program.
Finally, the rupee ended at 66.84, 4 paise stronger from its previous close of 66.88 on Friday. The currency touched a high and low of 66.93 and 66.82 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 66.86 and for Euro stood at 72.80 on October 21, 2016. While the RBI’s reference rate for the Yen stood at 64.43, the reference rate for the Great Britain Pound (GBP) stood at 81.67.The reference rates are based on 12 noon rates of a few select banks in Mumbai.
