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

Indian rupee strengthened against the US dollar on Monday on increased selling of the American currency by exporters and banks. Besides, a higher opening in the domestic equity market also supported the domestic unit. However, the dollar’s strength against some currencies overseas capped the rupee’s gains. On the global front, sterling hit seven-week lows on Monday after Britain set a March deadline to begin its exit from the European Union, while the dollar firmed as fears about Deutsche Bank receded and investors looked to this week's US jobs data.

The partially convertible currency is currently trading at 66.50, stronger by 10 paise from its previous close of 66.60 on Friday. The currency touched a high and low of 66.5350 and 66.45 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 66.66 and for Euro stood at 74.75 on September 30, 2016. While the RBI’s reference rate for the Yen stood at 66.05, the reference rate for the Great Britain Pound (GBP) stood at 86.42.The reference rates are based on 12 noon rates of a few select banks in Mumbai.