Rupee strengthens on increased selling of US currency by exporters and banks

Indian rupee strengthened against dollar in early deals on Monday on increased selling of the US currency by exporters and banks. Besides, the dollar's weakness against some currencies overseas and a higher opening of the domestic equity market too supported the rupee. RBI’s involvement in the Forex markets has provided lot of stability to the Indian rupee. Forex market remained closed on Thursday and Friday on account of Id-e-Milad and Christmas, respectively. On the global front, the dollar held above a two-month low against the yen in early Asian trade on Monday, supported by downbeat Japanese economic data and clinging to its recent ranges in holiday-thinned trading.

The partially convertible currency is currently trading at 66.12, stronger by 9 paise from its previous close of 66.21 on Wednesday. The currency touched a high and low of 66.1650 and 66.0950 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 66.20 and for Euro stood at 72.41 on December 23, 2015. While, the RBI’s reference rate for the Yen stood at 54.74 the reference rate for the Great Britain Pound (GBP) stood at 98.2967. The reference rates are based on 12 noon rates of a few select banks in Mumbai.

(RBI-Reference Rate)