Indian rupee pared some of its early gains but still ended marginally higher against the American currency on Thursday on continued dollar selling by banks and exporters. Local currency got some support with finance ministry’s statement that the RBI’s decision to cut key policy rate by 0.25 percent is an important step to achieve sustained growth consistent with moderate inflation and India’s potential. However, firm dollar against some global currencies overseas and massive losses of domestic equity markets restricted further gains. On the global front, dollar inched away from a 15-month low versus a basket of currencies on Thursday, but was still looking wobbly due to doubts about whether there will be another US interest rate rise this year.
Finally, the rupee ended at 63.68, 2 paise stronger from its previous close of 63.70 on Wednesday. The currency touched a high and low of 63.70 and 63.56 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 63.63 and for Euro stood at 75.39 on August 03, 2017. While the RBI’s reference rate for the Yen stood at 57.53, the reference rate for the Great Britain Pound (GBP) stood at 84.15. The reference rates are based on 12 noon rates of a few select banks in Mumbai.
