Indian rupee strengthened to one and a half month high on Tuesday as custodian banks sold American currency that could be channeled into domestic shares or debt investments, following improved risk appetite. The government last week hiked foreign investor limits in government debt by $5 billion to $20 billion that would be auctioned by the stock market regulator on Wednesday. Continuing its winning streak for fourth consecutive session, Indian rupee appreciated on hopes of policy reforms from the new Finance Minister (cum Prime Minister) Manmohan Singh. Gains of local equities along with regional counterparts too added fuel to the fire. On the global front, Euro was steady against the dollar on Tuesday as prospects of weakness in the U.S. economy leading to further monetary easing offset poor euro zone data and doubts about a European plan to support indebted countries.
Finally the rupee ended at 54.37, stronger by 1 Rupee and 6 paise from its previous close of 55.43 on Monday. The currency touched a high and low of 55.44 and 54.35 respectively. The Reserve Bank of India's (RBI) reference rate for the dollar stood at Rs 54.81 and for Euro it stood at Rs 69.06 on July 3, 2012. While, the RBI’s reference rate for the Yen stood at 68.71, the reference rate for the Great Britain Pound (GBP) stood at 86.0392. The reference rates are based on 12 noon rates of a few select banks in Mumbai.
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