Snapping two day falling streak, Indian rupee bounced back against the Greenback on Thursday, on the back of fresh dollar selling by exporters and some banks. Traders took some support with report that the capital markets regulator, Securities and Exchange Board of India (SEBI) is likely to ease entry norms for FPIs willing to invest in the Indian markets. It may ease some rules, including expanding the eligible jurisdictions for registration by including countries with diplomatic tie-ups with India. Besides, the dollar losing muscle against other currencies overseas, largely supported the rupee’s recovery. However, gains were limited as some concern came with the government decision to make additional borrowing of Rs 50,000 crore this fiscal through dated securities, a move that may put burden on the fiscal deficit target of 3.2 percent of GDP. On the global front, dollar slipped to a four-week low against a basket of currencies on Thursday, kept under pressure by a recent dip in US 10-year bond yields.
Finally, the rupee ended at 64.08, 7 paise stronger from its previous close of 64.15 on Wednesday. The currency touched a high and low of 64.28 and 64.07 respectively. The Reserve Bank of India's (RBI) reference rate for the dollar stood at 64.17 and for Euro stood at 76.56 on December 28, 2017. While the RBI's reference rate for the Yen stood at 56.89, the reference rate for the Great Britain Pound (GBP) stood at 86.22. The reference rates are based on 12 noon rates of a few select banks in Mumbai.
