Indian rupee shed most of its early gains but still ended higher against the American currency on Monday, due to selling of the US currency by exporters and banks. Sentiments remained positive as India's inflation on wholesale level eased in the month of December, supported by lower food articles and minerals prices. Also, industrial production growth accelerated to 25-month high of 8.4% in November 2017, as compared to 5.1% in November 2016, on the back of robust performance of manufacturing and capital goods sectors. Besides, the dollar's weakness against some currencies overseas along with good gains in local equities largely supported the rupee trade. However, the local currency trimmed most of its initial gains, as some concern came with data showing that India’s retail inflation or Consumer Price Index (CPI) shot up to a 17-month high of 5.2% in the month of December 2017, as against 3.41% growth in December 2016. On the global front, euro held at three-year highs against dollar on Monday after last week’s surge, its rise fueled by growing expectations that the European Central Bank will tighten monetary policy, while the dollar weakened further.
Finally, the rupee ended at 63.48, 14 paise stronger from its previous close of 63.62 on Friday. The currency touched a high and low of 63.49 and 63.33 respectively. The Reserve Bank of India's (RBI) reference rate for the dollar stood at 63.41 and for Euro stood at 77.44 on January 15, 2018. While the RBI's reference rate for the Yen stood at 57.23, the reference rate for the Great Britain Pound (GBP) stood at 87.17. The reference rates are based on 12 noon rates of a few select banks in Mumbai.
