Rupee strengthens modestly against US dollar on Tuesday

Indian rupee was up marginally against the US dollar on Tuesday on increased selling of the American currency by exporters and banks. Besides, higher opening of the domestic equity market too supported the rupee, but strength in the dollar against other currencies overseas backed by improving prospects of a US rate hike capped the gains. Investors traded cautiously ahead of RBI policy decision due later in the day. On the global front, the dollar strengthened against the yen and euro on Tuesday, boosted by an upbeat US manufacturing sector survey, while the pound wallowed near a three-decade low on concerns over a potential ‘hard Brexit’ for Britain.

The partially convertible currency is currently trading at 66.56, stronger by 2 paise from its previous close of 66.58 on Monday. The currency touched a high and low of 66.5775 and 66.5125 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.