Rupee strengthens on continued selling of American currency by banks and exporters

Indian rupee strengthened against dollar in early deals on Thursday on continued selling of the American currency by banks and exporters amid increased foreign fund inflows. Besides, a higher opening in the domestic equity market too supported rupee’s gains. Sentiment remained positive on hopes of a rate cut by RBI during the monetary policy review next week. Most Asian currencies have gained after Fed Chair Janet Yellen's dovish comments on the US interest rate trajectory. Yellen said the rate of inflation in the US has not yet proven sustainable against the backdrop of looming global risks to the US economy and that the US central bank should proceed only cautiously to the policy adjustments. On the global front, investors gave the dollar a wide berth early on Thursday as dovish comments from Federal Reserve Chair Janet Yellen continued to resonate, dampening demand for the currency.

The partially convertible currency is currently trading at 66.33, stronger by 5 paise from its previous close of 66.38 on Wednesday. The currency touched a high and low of 66.3475 and 66.2750 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 66.41 and for Euro stood at 75.03 on March 30, 2016. While the RBI’s reference rate for the Yen stood at 59.11, the reference rate for the Great Britain Pound (GBP) stood at 95.6311. The reference rates are based on 12 noon rates of a few select banks in Mumbai.

(RBI-Reference Rate)