Rupee strengthens on mild selling of US currency by exporters

Indian rupee strengthened against the dollar in morning trade on Friday on mild selling of the US currency by exporters amidst higher opening in the domestic equity market. However, some gains were capped with investors remaining cautious ahead of key economic data -- Consumer Price Index (CPI) inflation and index of industrial production (IIP) data due later in the day. On the global front, the dollar held firm on Friday, supported by comments from a senior Federal Reserve official suggesting a US interest rate increase this year is still a real possibility as inflation pressures emerge.

The partially convertible currency is currently trading at 66.82, stronger by 2 paise from its previous close of 66.84 on Thursday. The currency touched a high and low of 66.8575 and 66.7925 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 66.86 and for Euro stood at 74.65 on August 11, 2016. While, the RBI’s reference rate for the Yen stood at 65.91, the reference rate for the Great Britain Pound (GBP) stood at 86.95. The reference rates are based on 12 noon rates of a few select banks in Mumbai.