Indian rupee strengthened for second consecutive session on Thursday, on dollar selling by exporters and banks, and last hour recovery in local equity markets also influenced the rupee sentiment. Some support also came with global rating agency Moody’s latest report that its outlook for the Indian banking system is stable on improved prospects for asset quality. However, gains were capped as traders remained cautious ahead of Gross Domestic Product (GDP) figures to be announced later in the day. On the global front, US dollar advanced against euro and yen after strong US growth data fuelled speculations that the Federal Reserve could consider hiking interest rate for a third time this year.
Finally, the rupee ended at 63.91, 10 paise stronger from its previous close of 64.01 on Wednesday. The currency touched a high and low of 64.06 and 63.89 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 64.01 and for Euro stood at 76.04 on August 31, 2017. While the RBI’s reference rate for the Yen stood at 57.91, the reference rate for the Great Britain Pound (GBP) stood at 82.69. The reference rates are based on 12 noon rates of a few select banks in Mumbai.
