Rupee pares losses on back of foreign capital inflows

On Friday, the rupee ended at 63.47/$, stronger by 5 paise from its previous close of 63.52/$ on Thursday. The currency touched a high and low of $63.45 and $63.52 respectively.

Indian rupee pared losses against the greenback, helped by the stability in the equity markets and healthy foreign capital inflows. Indian government has approved a policy for composite foreign investment in India. Foreign Direct Investment, Foreign Institutional Investors and other investment routes will be included under one category. The move is aimed at simplifying the process for investors to do
business and invest in India.

Nevertheless, concerns over poor monsoon linger in the minds of the market participants. Although the onset of monsoon in India has been healthy this year, July rainfall has witnessed unprecedented lull, registering 33% deficiency and overall rainfall being 6% below normal.  

On Friday, the rupee ended at 63.47/$, stronger by 5 paise from its previous close of 63.52/$ on Thursday. The currency touched a high and low of $63.45 and $63.52 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 63.49 and for Euro stood at 69.14 on July 17, 2015. While, the RBI’s reference rate for the Yen stood at 51.20, the reference rate for the Great Britain Pound (GBP) stood at 99.4297.