Indian rupee ended marginally stronger against the US dollar on Tuesday on fresh selling of American currency by banks and exporters. Domestic currency got some support with NITI Aayog Vice-Chairman Arvind Panagariya’s statement where he defended the Centre’s proposal for four-tier rate structure and a cess under the Goods and Services Tax stating that said would ensure less inflationary implications and lower tax rates for consumers as well as revenue predictability for the exchequer. However, losses in the local equity market capped the rupee gains. On the global front, dollar hovered near a nine-month high against a basket of major currencies and touched a one-week high against yen on Monday on growing expectations of a Federal Reserve interest rate increase in December.
Finally, the rupee ended at 66.82, 2 paise stronger from its previous close of 66.84 on Monday. 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 66.87 and for Euro stood at 72.78 on October 25, 2016. While the RBI’s reference rate for the Yen stood at 64.06, the reference rate for the Great Britain Pound (GBP) stood at 81.77.The reference rates are based on 12 noon rates of a few select banks in Mumbai.
