Indian rupee ended strong against dollar on Monday on account of sustained selling of American currency by banks and importers. Traders got some support after Finance Minister expressed hope that demonetisation will help increase government revenue and lower fiscal deficit, leading to higher expenditure on defence and rural infrastructure. Besides, dollar weakness against other currencies overseas also supported the rupee sentiment but capital outflows from the domestic equity markets restricted the gains. On the global front, dollar dipped against the yen on Monday, after U.S. Treasury yields fell on mixed economic data.
Finally, the rupee ended at 67.74, 7 paise stronger from its previous close of 67.81 on Friday. The currency touched a high and low of 67.85 and 67.73 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 67.83 and for Euro stood at 70.96 on December 26, 2016. While the RBI’s reference rate for the Yen stood at 57.96, the reference rate for the Great Britain Pound (GBP) stood at 83.31.The reference rates are based on 12 noon rates of a few select banks in Mumbai.
