Indian rupee closed with marginal gains of 1 paise at 66.97 against against the US dollar at at the Interbank Foreign Exchange (forex) market on Monday as bankers and exporters took to selling of American currency amid firm domestic equity markets. The local currency also got a boost following reports that Finance Ministry officials are expected to pitch a ratings upgrade to Moody’s by stressing upon the various reform initiatives taken by the Narendra Modi government, including the goods and service tax, bankruptcy code, and inflation targeting through the monetary policy committee, among others. The local currency opened at 66.95 level on Monday had closed at 66.98 level on Friday against the US dollar.
“Indian Rupee appreciated at the open on the back of inflows into the primary market. However, intervention from central bank kept the pair within a range of 66:90/98 levels on spot. Near term range 66:60-67:25,” Anindya Banerjee, currency analyst, Kotak Securities said.
Increased foreign fund inflows also contributed to rupee’s rally. Dollar’s weakness against some other currencies overseas boosted the rupee value against the dollar. On the global front, dollar fell from a two-week high on Monday, with a stronger oil price the chief theme in a market battening down the hatches ahead of central bank policy meetings in Japan and the United States.
Domestic equity markets closed with gains for a fourth session on Monday tracking gains in Asian markets as investors looked ahead to key central bank meetings this week in the US and Japan for clues on global monetary policies. Sensex settled the day with gains of 35.47 points to close at 28,634.50, while NSE Nifty ended at 8,808.40, by gaining 28.55 points.
The Indian currency touched a high and low of 66.98 and 66.86 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 66.87 and Euro stood at 74.68 on September 19, 2016. While the RBI’s reference rate for the Yen stood at 65.54 and the reference rate for the Great Britain Pound (GBP) stood at 87.26.The reference rates are based on 12 noon rates of a few select banks in Mumbai.