Rupee surges to hit four month high on Tuesday

Indian rupee extended the gaining streak for the fifth consecutive day and hit a four month high on Tuesday against the US dollar, after lower-than-expected US payroll data reduced fears of a rate hike by the US Federal Reserve. The domestic currency remained in jubilant mood from the very beginning and positive start followed by a rally in local equity markets, bucking global trends led the rupee to strengthen further. There were signs of continued buying interest from foreign institutional investors (FIIs) in local equity markets. On the global front, the dollar edged lower against the other major currencies on Tuesday, as lower expectations for an upcoming US rate hike weighed on the greenback.

Finally the rupee ended at 66.52, stronger by 30 paise from its previous close of 66.82 on Friday. The currency touched a high and low of 66.57 and 66.47 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 66.54 and for Euro stood at 74.16 on September 6, 2016. While the RBI’s reference rate for the Yen stood at 64.20, the reference rate for the Great Britain Pound (GBP) stood at 88.64.The reference rates are based on 12 noon rates of a few select banks in Mumbai.