Indian rupee gained strength on Thursday, in line with other Asian currency, on account of U.S. Congress' approval to an 11th-hour deal to end a fiscal standoff and avoid a damaging default on government debt, which bolstered risk appetite for emerging market’s currency including Rupee. The appreciation of Indian currency came against the backdrop of negative local equities, which dropped after World Bank lowered India’s forecast to 4.7% from 6.1% for the current fiscal year, citing a sharp slowdown in manufacturing and investment as well as negative business confidence. Further, dollar sales by exporters and banks, also added to the currency’s strength. On the global front, dollar fell against a basket of currencies on Thursday as investors marked a deal to end the U.S. debt stalemate by focusing on the economic impact of the government shutdown.
Finally, the rupee ended at 61.24, stronger by 61 paise from its previous close of 61.85 on Tuesday. The currency touched a high and low of 61.72 and 61.23 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 61.58 and for Euro it stood at 83.49 on October 17, 2013. While, the RBI’s reference rate for the Yen stood at 62.51, the reference rate for the Great Britain Pound (GBP) stood at 98.5111. The reference rates are based on 12 noon rates of a few select banks in Mumbai.
