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Rupee ends one-month high against dollar on Tuesday

08 Nov 2016 Evaluate

Indian rupee ended one-month high against US dollar on account of fresh selling of the American currency by banks and exporters. Sentiments remained optimistic on the report that Retail inflation is expected to soften to 4.1 percent in October and ease further to sub-4 percent level by November-December, largely helped by favourable base effect. Some support also came with Finance Minister Arun Jaitley's statement that the Centre will step up on reforms to attract more investment and fill up infrastructure deficit. He also said that after seven decades of independence, India’s voice is increasingly getting noticed in the world, therefore to reform more, to open more, to attract more investment, to expand more in manufacturing, they need to fill up the infrastructure deficit faster than what they have been doing. On the global front, dollar inched lower ahead of voting in the US presidential election, a sign of last-minute nerves over the chances of a victory for Donald Trump that traders and analysts say would knock several percent off the greenback’s value.

Finally, the rupee ended at 66.62, 11 paise stronger from its previous close of 66.73 on Monday. The currency touched a high and low of 66.72 and 66.61 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 66.70 and for Euro stood at 73.65 on November 08, 2016. While the RBI’s reference rate for the Yen stood at 63.91, the reference rate for the Great Britain Pound (GBP) stood at 82.71.The reference rates are based on 12 noon rates of a few select banks in Mumbai.

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