The rupee opened higher on fresh selling of the US currency by banks and exporters.
US financial markets were closed on account of Thanksgiving holiday, volatility remained intense in the precious pack, with gold prices moving below the crucial support of US$1,800/oz. At the current juncture, it seems to be a futile attempt to figure out a bottom, given the ferocious ascent seen in US dollar against the basket of currencies. With US$1,180 taken out, the path of least resistance is now towards US$1,130/oz.
Amid the developed markets, British Pound seems to be the most resilient currency, with values managing to hold around 1.23-1.25 range for the past few trading sessions. In fact, downgrade in UK GDP forecasts also failed to adversely impact the currency. In this regard, British government is now forecasting growth of 1.4% in 2017, down from 2.2% in March. It seems markets have already factored in the worst for the Sterling.
The Indian Rupee closed higher by 27 paise at 68.46/$ on Friday. The local unit hit a high of 68.30/$ and a low of 68.66/$ today.
The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 68.46 while for the Euro it was 72.38. The RBI’s reference rate for the Yen stood at 60.32; reference rate for the Great Britain Pound (GBP) stood at 85.2222.