Indian rupee rebounded from early low’s to close higher against US dollar on Friday on the back of capital inflows, amid a weak trend in the American currency in overseas markets. Slide of the local equities after better than anticipated Q1FY13 GDP, dashed the hopes of rate cut by Reserve Bank of India in its upcoming monetary policy review, dragged the Indian currency in the noon deals. India's gross domestic product (GDP) grew higher than expected at 5.5% in the first quarter (April-June) of 2012-13 as against the consensus estimates of 5.3%. However, across the board dollar weakness on doubts whether US Federal Reserve chief Ben Bernanke would drop hints on monetary easing at the Jackson Hole conference in Wyoming, later in the day, mainly provided the required impetus to the local unit Meanwhile, with euro rising to an eight-week high against the dollar before the speech by Bernanke, rupee recovered sharply.
Finally the rupee ended at 55.53, stronger by 10 paise from its previous close of 55.63 on Thursday. The currency touched a high and low of 55.77 and 55.53 respectively. The Reserve Bank of India's (RBI) reference rate for the dollar stood at Rs 55.72and for Euro it stood at Rs 69.65 on August 31, 2012. While, the RBI’s reference rate for the Yen stood at 71.04, the reference rate for the Great Britain Pound (GBP) stood at 87.9508. The reference rates are based on 12 noon rates of a few select banks in Mumbai.