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Rupee strengthens amid sustained selling of American currency by exporters and banks

07 Mar 2017 Evaluate

Indian rupee strengthened against the dollar on Tuesday amid sustained selling of the American currency by exporters and banks. Further, continued buying from foreign institutional investors (FIIs) in both local equity and bond markets, and weakness in the dollar against other currencies overseas too supported the rupee. So far this year, FIIs have bought $1.76 billion and $430.60 million from local equity and debt markets, respectively. On the global front, the dollar steadied on Tuesday as investors widely expect the Federal Reserve to raise interest rates next week and are waiting for clues on the likely pace of hikes, including this week's US job data.

The partially convertible currency is currently trading at 66.64, stronger by 7 paise from its previous close of 66.71 on Monday. The currency touched a high and low of 66.6825 and 66.59 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 66.75 and for Euro stood at 70.73 on March 6, 2017. While the RBI’s reference rate for the Yen stood at 58.67, the reference rate for the Great Britain Pound (GBP) stood at 81.97. The reference rates are based on 12 noon rates of a few select banks in Mumbai.

Date1US$1GBP
March 06, 201766.755981.9762
March 03, 2017 66.835481.9603
(RBI-Reference Rate)

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