Indian rupee appreciating for second consecutive session ended stronger against dollar on Wednesday on increased selling of US currency by banks and exporters. Though, the Central Bank’s decision to keep repo rate unchanged at 6.25 percent weighted on rupee sentiment, withdrawal of 100% incremental cash reserve ratio (CRR) requirement, give some comfort to local currency. Some support also came with Asian Development Bank’s (ADB’s) report, indicating that the largest economies of Asia - India and China - will help maintain the growth rate of the region at 5.7% in 2016 and 2017. The report also mentioned that India’s growth prospects have got a boost from the acceptance of the 7th pay panel recommendations and likely implementation of the Goods and Services Tax (GST) regime next year. On the global front, dollar edged up against yen as investors looking ahead to Thursday’s European Central Bank policy meeting.
Finally, the rupee ended at 67.63, 27 paise stronger from its previous close of 67.90 on Tuesday. The currency touched a high and low of 68.00 and 67.63 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 67.87 and for Euro stood at 72.75 on December 7, 2016. While the RBI’s reference rate for the Yen stood at 59.41, the reference rate for the Great Britain Pound (GBP) stood at 85.86.The reference rates are based on 12 noon rates of a few select banks in Mumbai.
