Indian rupee logged its biggest daily gains in nearly a period of three years to settle at a two week high against American currency on Friday. Robust capital inflows on account of clarity on tax-avoidance rule, which rattled investor confidence in Asia's third-largest economy and unexpected steps unveiled by EU to support the region's onerous financial system, mainly buoyed the demand for emerging markets currencies. Further, gains of equity markets which were also on the back of petrol price cut, added to the optimism. On the global front, euro rose sharply against the dollar on Friday after European leaders agreed on action to lower the borrowing costs of Italy and Spain and create a single supervisory body for euro area banks.
Finally the rupee ended at 55.67, stronger by 1Re and 15 paise from its previous close of 56.82 on Thursday. The currency has touched a high and low of 56.66 and 55.67 respectively. The Reserve Bank of India's (RBI) reference rate for the dollar stood at Rs 56.30 and for Euro it stood at Rs 70.90 on June 29, 2012. While, the RBI’s reference rate for the Yen stood at 7.9080, the reference rate for the Great Britain Pound (GBP) stood at 88.0616. The reference rates are based on 12 noon rates of a few select banks in Mumbai.
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