Extending its gaining streak for second straight day, Indian rupee ended significantly higher against dollar on Friday, amid reports that the government may announce steps to prop up the domestic unit. Traders took encouragement with retail inflation of India cooling to an 10-month low of 3.69% in August mainly due to a fall in prices of kitchen items, including fruits and vegetables, while industrial production grew at 6.6% in July, slightly faster than the expected 6.5% expansion, on the back of good performance by the manufacturing sector and higher offtake of capital goods and consumer durables. Adding to the optimism, India’s Wholesale price index (WPI) inflation eased for the second straight month in August 2018, supported by declining minerals prices. Moreover, dollar losing sheen against some other currencies overseas coupled with good going in the local equity markets, mainly aided the currency’s appreciation. On the global front, euro rose to a two-week high on Friday after weaker-than-expected U.S. inflation data continued to weigh on the dollar and a broader recovery in investment sentiments supported the single currency.
Finally, the rupee ended at 71.86, 32 paise stronger from its previous close of 72.18 on Wednesday. The currency touched a high and low of 72.69 and 71.52 respectively. The reference rate for the dollar stood at 71.81 and for Euro stood at 83.97 on September 14, 2018. While the RBI’s reference rate for the Yen stood at 64.19, the reference rate for the Great Britain Pound (GBP) stood at 94.15. The reference rates are based on 12 noon rates of a few select banks in Mumbai.
