Indian rupee ended marginally higher against dollar on Wednesday, as banks and exporters continued to sell the US currency amid persistent capital inflows. Traders took some support with report that Index of Industrial Production (IIP) or factory output for the month of July 2017 stood at 1.2% compared to negative 0.1% in June 2017 and 5.2% in the similar month of the previous year. Moreover, dollar weakness against other currencies overseas, too lent support to rupee. However, gains were limited as investors maintained a cautious approach with the report that the Consumer Price Index (CPI)-based inflation surged to five-month high in August, mainly due to an increase in foods prices and higher services costs, indicating Goods and Services Tax’s (GST’s) inflationary impact. On the global front, dollar steadied on Wednesday, with investors expecting another quiet day for the currency ahead of key inflation data due on Thursday that will be closely watched by the US Federal Reserve as it considers when to raise interest rates.
Finally, the rupee ended at 63.99, 5 paise stronger from its previous close of 64.04 on Tuesday. The currency touched a high and low of 64.02 and 63.96 respectively. The Reserve Bank of India's (RBI) reference rate for the dollar stood at 63.98 and for Euro stood at 76.66 on September 13, 2017. While the RBI's reference rate for the Yen stood at 58.11, the reference rate for the Great Britain Pound (GBP) stood at 85.15. The reference rates are based on 12 noon rates of a few select banks in Mumbai.
