Snapping three-day losing streak, Indian rupee recovered against the American currency on Friday, on the back of dollar sales by exporters and bank. Sentiments got some support with Urjit Patel’s statement that the GST regime will expand the taxation base which in turn will lower the overall tax burden in the long-term. Investors shrugged off the report that funding of crop loan waivers is likely to worsen the fiscal deficit and leverage levels of state governments with gross state development loans issued by the state governments expected to rise by Rs 70,000 crore in FY2018. Besides, dollar weakness against other currencies overseas also supported the rupee sentiment but capital outflows from the domestic equity market restricted the further gains. On the global front, dollar eased against yen on Friday, as investors awaited US inflation data due next week to provide clues on the US Federal Reserve’s likely interest rate policy.
Finally, the rupee ended at 64.52, 7 paise stronger from its previous close of 64.59 on Thursday. The currency touched a high and low of 64.59 and 64.42 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 64.53 and for Euro stood at 72.08 on June 23, 2017. While the RBI’s reference rate for the Yen stood at 58.01, 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.
