Indian rupee surges on ECB comments

Indian rupee strengthened sharply on Friday, coming after Dussehra holiday. The gains were majorly induced by the European Central Bank (ECB) statement that it might continue its stimulus programme beyond 2016, if a need arise to lift euro zone growth. The domestic currency along with all other regional currencies looked strong from the beginning and was equally supported by the gains in the equity markets. Rupee traders also got some support with a World Bank latest report stating that remittances to India are projected to increase by 2.5 per cent this year. On the global front, the euro hovered just above two-month lows on Friday.

Finally, the rupee ended at 64.83, 29 paise stronger from its previous close of 65.12 on Wednesday. The currency touched a high and low of 64.94 and 64.77 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 64.88 and for Euro stood at 72.06 on October 23, 2015. While, the RBI’s reference rate for the Yen stood at 53.79 the reference rate for the Great Britain Pound (GBP) stood at 99.88. The reference rates are based on 12 noon rates of a few select banks in Mumbai.