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

Indian rupee strengthened against the dollar on Monday on increased selling of the American currency by banks and exporters. Besides, increased foreign fund inflows and a higher opening in the domestic equity market boosted the rupee value against the dollar. Furthermore, weakness of the dollar against some other currencies overseas too added support to domestic currency. On the global front, the dollar edged lower on Monday, paring some of the gains made in the wake of strong US inflation data that bolstered bets the Federal Reserve will raise interest rates this year.

The partially convertible currency is currently trading at 66.88, stronger by 10 paise from its previous close of 66.98 on Friday. The currency touched a high and low of 66.96 and 66.8625 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.