Rupee strengthens by 12 paise vs dollar

The currency touched a high and low of 66.07 and 66.10 respectively.

The Indian rupee resumed trade after a long break. It opened at 66.10/$ higher by 12 paise in early trade on Monday. RBI’s involvement in the Forex markets has provided lot of stability to the Indian rupee. On the domestic front, India’s current account widened to 1.6% of GDP during the second quarter of the FY 2015‐16, when compared with the reading of 1.2% during the prior quarter. However on yoy basis, the deficit has narrowed from the 2.2% during the same quarter last year.

On global macroeconomic front, US Q3 GDP growth was downwardly revised to 2%, when compared with the earlier estimate of 2.1%. Consumer spending grew at a 3%, in line with the prior projections. Healthy consumer spending is attributed to strengthening employment and housing markets. Low energy prices and ensuing rise in personal savings also boosted spending.

On Wednesday, Indian rupee ended at 66.21/$, higher by 11 paise. The currency touched a high and low of 66.07 and 66.10 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 66.20 and for Euro stood at 72.41 on December 23, 2015. While, the RBI’s reference rate for the Yen stood at 54.74, the reference rate for the Great Britain Pound (GBP) stood at 98.2967.