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Rupee improves marginally on fresh selling of American currency by exporters

16 Dec 2016 Evaluate

Indian rupee was trading marginally higher against the US dollar on Friday on fresh selling of the US currency by exporters. Further, a higher opening in domestic equity market also supported the rupee. Yesterday, rupee ended at lowest closing level against dollar since December 6, especially after the US Federal Reserve on Wednesday hiked interest rate by 25 basis points to 0.5 percent from 0.75 percent and announced hawkish outlook of three rate hikes in 2017 against two hikes expected in Fed's September policy. On the global front, the dollar held hefty gains against major currencies on Friday, after scaling 14-year highs against the euro and a broader basket of currencies as markets repositioned for a faster pace of rate rises by the Federal Reserve over the next year.

The partially convertible currency is currently trading at 67.82, little changed from its previous close of 67.83 on Thursday. The currency touched a high and low of 67.8575 and 67.8075 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 67.79 and for Euro stood at 71.15 on December 15, 2016. While the RBI’s reference rate for the Yen stood at 57.72, the reference rate for the Great Britain Pound (GBP) stood at 85.11. The reference rates are based on 12 noon rates of a few select banks in Mumbai.       

Date1US$1GBP
December 15, 201667.799485.1154
December 14, 201667.560485.5450
(RBI-Reference Rate)

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