Rupee gains 17 paise against US dollar

India Infoline News Service | Mumbai | September 22, 201609:05 IST

The rupee opened higher 17 paise at 66.86/$ against US Dollar Thursday as against the previous close of 67.01/$.

The rupee opened higher 17 paise at 66.86/$ against US Dollar Thursday as against the previous close of 67.01/$.

The rupee gained against US Dollar due to mild dollar selling by importers amid a firm domestic equity market and also strengthening of dollar against other currencies overseas capped the rupee's gains.

On the economy front, the current account deficit (CAD) narrowed sharply to just USD 300 million, or 0.1% of GDP, in the June quarter, driven by lower trade deficit on deeper import contraction, the Reserve Bank said.

The US Federal Reserve left interest rates unchanged on Wednesday but strongly signalled it could still tighten the monetary policy by the end of this year as the labour market improved further.

The Bank of Japan refrained from cutting interest rates from -0.1% at its monetary policy meeting, choosing instead to modify its existing policy framework. The BOJ said it would continue to buy long-term government bonds at a pace that allows the balance of its holdings to increase by 80 trillion yen ($781 billion) per year.

The Indian currency ended lower by five paise at 67.02/$. The local unit had hit a high of 66.88 and a low of 66.91. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 67.02 and for Euro stood at 74.88. The RBI’s reference rate for the Yen stood at 65.86; reference rate for the Great Britain Pound (GBP) stood at 87.3740.
 

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