Indian rupee strengthened considerably on Wednesday, on fresh selling of the US currency by banks and exporters. Rupee throughout the day remained positive, taking support with report that the growth of eight core infrastructure industries surged to five-month high by 4.9% in August 2017, as compared to 2.4% in July 2017, on the back of a double-digit jump in coal production and subsequent rise in electricity generation. Rupee sentiments improved further after the RBI decided to maintain status quo and keep its key interest rate, the repo rate, unchanged at 6%. The pause was on expected lines as market consensus had predicted a pause in its cutting cycle. The rupee sentiment was also buoyed as the dollar retreated globally as attention shifted to the likely composition of the new Federal Reserve board after the incumbent Chair Janet Yellen’s term ends.
Finally, the rupee ended at 65.05, 45 paise stronger from its previous close of 65.50 on Tuesday. The currency touched a high and low of 65.38 and 64.95 respectively. The Reserve Bank of India's (RBI) reference rate for the dollar stood at 65.28 and for Euro stood at 76.82 on October 04, 2017. While the RBI's reference rate for the Yen stood at 58.00, the reference rate for the Great Britain Pound (GBP) stood at 86.62. The reference rates are based on 12 noon rates of a few select banks in Mumbai.
