Indian rupee ended at four-month high against US dollar on Tuesday, due to selling of greenback by banks and exporters. This is the second consecutive session when the rupee is traded higher against dollar. Domestic currency got some support with the Global rating agency Fitch’s report that Indian economy will grow by 7.1% in the current financial year before stepping up to 7.7% in the next two financial years. It said the December quarter GDP number suggests that economic activity was ‘hardly hit’ by the cash crunch after the government's move to remove 86 per cent of currency in circulation overnight. Moreover, gains in the rupee was also due to dollar weakness against other currencies overseas as well as robust foreign fund inflows. On the global front, 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.
Finally, the rupee ended at 66.67, 4 paise stronger from its previous close of 66.71 on Monday. The currency touched a high and low of 66.69 and 66.59 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 66.63 and for Euro stood at 70.55 on March 7, 2017. While the RBI’s reference rate for the Yen stood at 58.48, the reference rate for the Great Britain Pound (GBP) stood at 81.53.The reference rates are based on 12 noon rates of a few select banks in Mumbai.
