Rupee strengthens on selling of American currency by exporters and banks

Indian rupee strengthened against the dollar on Thursday on selling of the American currency by exporters and banks amid foreign fund inflows. Besides, gains in Asian currencies and a higher opening in the domestic equity markets also supported the rupee. Furthermore, dollar's weakness against major world currencies globally after the US Federal Reserve decided against lifting interest rates helped the rupee sentiment. On the global front, the dollar hit near 4-week low against the yen on Thursday after the US Federal Reserve kept monetary policy steady and projected a less aggressive path for interest rates hikes in coming years.

The partially convertible currency is currently trading at 66.85, stronger by 17 paise from its previous close of 67.02 on Wednesday. The currency touched a high and low of 66.8925 and 66.8250 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 67.06 and for Euro stood at 74.69 on September 21, 2016. While the RBI’s reference rate for the Yen stood at 65.49, the reference rate for the Great Britain Pound (GBP) stood at 87.01.The reference rates are based on 12 noon rates of a few select banks in Mumbai.

(RBI-Reference Rate)