Indian rupee rebounded from two month low to end stronger on Monday, thanks to dollar sales by custodian banks and a broad risk-on mood globally. Risk appetite returned after US President Barack Obama expressed confidence that he and Congress would reach an agreement over the government’s budget. However, consolidation witnessed across D-Street on account of prevailing caution ahead of the start of the winter session of parliament, which will test the government's resolve to pass legislation at a time when worries about the fiscal deficit are rising, mainly capped the appreciation of Indian currency. On the global front, euro was also lifted by the prospects of euro zone finance ministers agreeing with the International Monetary Fund on a two-year funding deal for Greece.
Finally the rupee ended at 55.05, stronger by 12 paise from its previous close of 55.17 on Friday. The currency touched a high and low of 55.11 and 54.90 respectively. The Reserve Bank of India's (RBI) reference rate for the dollar stood at Rs 54.96 and for Euro it stood at Rs 70.15 on November 19, 2012. While, the RBI’s reference rate for the Yen stood at 67.65 the reference rate for the Great Britain Pound (GBP) stood at 87.4957. The reference rates are based on 12 noon rates of a few select banks in Mumbai.
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