Rupee strengthens against the US dollar on Monday

Indian rupee strengthened on Monday due to sustained selling of the US currency by exporters and banks amid strong gains in local market. Indian rupee got some support with data showing that India’s core sector output rising to 3.2% in August on the back of sharp rise in steel production and a pickup in cement, suggesting a lift in infrastructure and construction activity. Some support also came with the report that foreign investors pumped in more than Rs 20,000 crore into the capital market in September, making it the highest net inflow in 11 months. On the global front, the pound lost ground against major currency crosses on Monday, nearing a 31-year low versus the greenback, after UK's Prime Minister Theresa May said that government would trigger Article 50, the prelude to British exit talks from the European Union, by the end of March 2017.

Finally, the rupee ended at 66.58, 3 paise stronger from its previous close of 66.61on Friday. The currency touched a high and low of 66.59 and 66.45 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 66.53 and for Euro stood at 74.71 on October 3, 2016. While the RBI’s reference rate for the Yen stood at 65.70, the reference rate for the Great Britain Pound (GBP) stood at 85.86.The reference rates are based on 12 noon rates of a few select banks in Mumbai.