Reversing previous session’s losses, Indian rupee staged a smart recovery against dollar on Tuesday, due to heavy dollar selling by banks and exporters. Besides, the dollar losing muscle against other currencies overseas too supported the rupee. Market participants overlooked a report stating that the rupee is over-valued and the fair value of the local currency is 70-71 to a greenback. The widening current account deficit and higher interest rates have made the rupee the worst among its Asian peers so far this year. On the global front, U.S. dollar fell on Tuesday as market sentiments were weighed upon by U.S. sanctions on Iran.
Finally, the rupee ended at 68.68, 20 paise stronger from its previous close of 68.88 on Monday. The currency touched a high and low of 68.93 and 68.65 respectively. The reference rate for the dollar stood at 68.80 and for Euro stood at 79.55 on August 7, 2018. While the RBI’s reference rate for the Yen stood at 61.81, the reference rate for the Great Britain Pound (GBP) stood at 89.13. The reference rates are based on 12 noon rates of a few select banks in Mumbai.
