Rupee strengthens 35 paise against US Dollar

India Infoline News Service | Mumbai | September 22, 2016, 17:22 IST

The rupee gained against US Dollar on increased dollar selling by banks and exporters amid foreign fund inflows.

The rupee gained against US Dollar on increased dollar selling by banks and exporters amid foreign fund inflows. Besides, increased selling of the dollar by exporters and banks and a strong domestic equity market supported the rupee. The rupee closed at highest level since September 8.

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 higher by 35 paise at 66.66/$. The local unit had hit a high of 66.69 and a low of 66.92. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 66.84 and for Euro stood at 75.02. The RBI’s reference rate for the Yen stood at 66.65; reference rate for the Great Britain Pound (GBP) stood at 87.3398.
 

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