Indian rupee appreciated against US dollar on Thursday ahead of key economic data i.e. November IIP and December CPI data, scheduled to be released later in the session. Gains of local equities and dollar selling by exporters and banks mainly aided the currency’s appreciation. Traders took some support with Reserve Bank of India’s (RBI’s) suggestion of uniform rate of withholding tax for overseas borrowings, irrespective of type and currency. If the government agrees, this could lower the cost of overseas borrowing for Indian companies. Simplifying the levy will improve the ability of Indian companies to raise money. On the global front, dollar slipped against yen after President-elect Donald Trump's news conference failed to offer details on his plans to boost fiscal spending and cut taxes.
Finally, the rupee ended at 68.08, 25 paise stronger from its previous close of 68.33 on Wednesday. The currency touched a high and low of 68.13 and 67.95 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 68.08 and for Euro stood at 72.23 on January 12, 2017. While the RBI’s reference rate for the Yen stood at 59.45, the reference rate for the Great Britain Pound (GBP) stood at 83.19.The reference rates are based on 12 noon rates of a few select banks in Mumbai.
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