Indian rupee is trading flat against the US dollar on Monday, on increased selling of the American currency by exporters and banks amid a significant bullish breakout in the domestic stock markets. The central bank’s upbeat comments on the economic growth outlook predominantly triggered a fresh leg of a bullish move for the home currency after initial weakness. Meanwhile, the Reserve Bank of India maintained its growth outlook for the economy, projecting GDP expansion of 7.4% in 2018-19 on the back of robust macroeconomic environment. On the global front, the dollar held firm against a basket of its peers on Monday, after US job data reinforced investors’ expectations the Federal Reserve will gradually raise interest rates this year. US job growth slowed more than expected in July, but a fall in the unemployment rate suggested that labor market conditions were tightening.
The partially convertible currency is currently trading flat from its previous close of 68.61 on Friday. The currency touched a high and low of 68.6325 and 68.5375 respectively. The reference rate for the dollar stood at 68.79 and for Euro stood at 79.67 on August 3, 2018. While the RBI’s reference rate for the Yen stood at 61.58, the reference rate for the Great Britain Pound (GBP) stood at 89.51. The reference rates are based on 12 noon rates of a few select banks in Mumbai.
