Rupee appreciates against US dollar on Friday

Indian rupee appreciated against US dollar due to selling of American currency by banks and exporters. Investors got some confidence after Finance Minister Arun Jaitley expressed hope that the Reserve Bank will keep in mind the decline in retail inflation, while deciding on interest rates at its policy review meeting on October 4, 2016. Foreign fund inflows, dollar’s weakness against other currencies and a firm domestic equity market also helped the home currency. On the global front, dollar eased against the yen as lacklustre US economic data further dampened already low expectations of a Federal Reserve interest rate hike next week.

Finally the rupee ended at 66.98, stronger by 4 paise from its previous close of 67.02 on Thursday. The currency touched a high and low of 67.03 and 66.84 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 66.88 and for Euro stood at 75.15 on September 16, 2016. While the RBI’s reference rate for the Yen stood at 65.52, the reference rate for the Great Britain Pound (GBP) stood at 88.47.The reference rates are based on 12 noon rates of a few select banks in Mumbai.