Rupee recoups early losses; ends marginally stronger

Indian rupee recouped its early losses and ended marginally higher against dollar on Tuesday taking its winning streak to third trading session, on account of selling of the greenback by banks and exporters. The domestic currency was weak in the beginning but smart rally in local equity market supported the rupee. Some support also came with India's Chief Economic Adviser (CEA) Arvind Subramanian’s statement that India's economy has the potential to grow between 8 to 10 per cent if the country continues its pace of reforms. Meanwhile, investors remained cautious ahead of IIP and inflation data scheduled to be released later in the day. On the global front, US dollar declined against most major counterparts on Tuesday, as traders focus on a slew of US economic reports due this week for more clarity about monetary policy. 

Finally, the rupee ended at 66.42, 1 paise stronger from its previous close of 66.43 on Monday. The currency touched a high and low of 66.55 and 66.39 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 66.49 and for Euro stood at 75.91 on April 12, 2016. While the RBI’s reference rate for the Yen stood at 61.38, the reference rate for the Great Britain Pound (GBP) stood at 94.7487. The reference rates are based on 12 noon rates of a few select banks in Mumbai.