Indian rupee showed a strong rally on Thursday, once even breaching 62 per dollar mark against the dollar, supported by Reserve Bank of India’s latest measure to relax the minimum maturity tenure for banks' foreign currency borrowings to one year from three years. The central bank has also said that it will also undertake open market operations if necessary. The domestic currency also took support with the recovery in equity markets and strength in most Asian currencies compared to the dollar. In global markets, the dollar turned weak against yen and a basket of major currencies, weighed down by the budget impasse and a possible federal debt default.
Finally the rupee ended at 62.07, stronger by 36 paise from its previous close of 62.43 on Wednesday. The currency has touched a high and low of 62.38 and 61.98 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 62.22 and for Euro it stood at 84.10 on September 26, 2013. While, the RBI’s reference rate for the Yen stood at 62.84, the reference rate for the Great Britain Pound (GBP) stood at 100.0594. The reference rates are based on 12 noon rates of a few select banks in Mumbai.
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