Extending gains for the third straight session, Indian rupee ended at 1-month high against the US dollar on Thursday. Rupee sentiments remained optimistic on hopes that the RBI's decision to withdraw the incremental CRR requirement will give banks more room to cut lending rates sharply. Local currency also got some support after Standard and Poor's (S&P) in its latest report stated that India will be less affected by changes in growth and monetary policy in the new set-up under Donald Trump administration due to its large domestic economy. The rupee looked strong from the very beginning and was also supported by strong rally in local equity markets. On the global front, euro strengthened against dollar ahead of the monetary policy decision from the European Central Bank, with analysts expecting an extension of monthly bond buying program to support crumbling Eurozone amid Italy turmoil and Brexit.
Finally, the rupee ended at 67.35, 28 paise stronger from its previous close of 67.63 on Wednesday. The currency touched a high and low of 67.51 and 67.32 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 67.43 and for Euro stood at 72.61 on December 8, 2016. While the RBI’s reference rate for the Yen stood at 59.44, the reference rate for the Great Britain Pound (GBP) stood at 85.24.The reference rates are based on 12 noon rates of a few select banks in Mumbai.
