Snapping five days losing streak, Indian rupee appreciated against dollar on Friday supported by the suspected intervention of the Reserve Bank of India (RBI) in the currency market. Sentiments also got some support with Finance Minister Arun Jaitley’s statement that the government’s demonetisation move is going to have a positive impact on the economy, including GDP. Jaitley said there will be a positive impact because a lot of money that operates in the shadowy economy will now become part of the banking structure and banks will have a lot more money to support the economy. Besides, strong gains in the equity market too contributed to the rupee gain. On the global front, dollar rose to an 8-month high against the yen on Friday as U.S. bond yields resumed their rise in Asia after the Thanksgiving break shut markets in the United States.
Finally, the rupee ended at 68.46, 28 paise stronger from its previous close of 68.74 on Thursday. The currency touched a high and low of 68.69 and 68.36 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 68.46 and for Euro stood at 72.38 on November 25, 2016. While the RBI’s reference rate for the Yen stood at 60.32, the reference rate for the Great Britain Pound (GBP) stood at 85.22.The reference rates are based on 12 noon rates of a few select banks in Mumbai.
