Indian rupee appreciated against US dollar on Tuesday, as fresh sale of the US currency by exporters paced up. Local currency got some support with the Railway Minister Suresh Prabhu’s statement that the India’s GDP growth to the tune of 8-9% was expected and the new tax rates would contribute significantly towards this. He also said the Goods and Services Tax (GST) aims at increasing the number of taxpayers and, as the tax revenue rises, the GDP will also increase. Moreover, the local unit was in a sweet spot also because of a weak dollar overseas. On the global front, US dollar pared its loss against yen on Tuesday, with the greenback having been pushed lower as news of North Korea’s missile testing prompted haven bids for Japan’s currency.
Finally, the rupee ended at 64.73, 14 paise stronger from its previous close of 64.87 on Monday. The currency touched a high and low of 64.88 and 64.69 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 64.81 and for Euro stood at 73.59 on July 04, 2017. While the RBI’s reference rate for the Yen stood at 57.49, the reference rate for the Great Britain Pound (GBP) stood at 83.91. The reference rates are based on 12 noon rates of a few select banks in Mumbai.
