Representational image: Fifty rupee note and coinsIB Times India

The Indian rupee strengthened on Friday by 6 paise at 60.08 per dollar versus Thursday's closing of 60.14 a dollar at the Interbank Foreign Exchange Market. 

Most Asian currencies traded stronger against the dollar on Friday, Reuters reported. The index of the dollar against six major currencies fell by 0.1 percent. The rupee will trade in a 60 to 60.40 range per dollar.

But, the rupee ended weakly on Thursday, due to dollar demand and lower stocks, apart from Iraq crisis.

The New Zealand dollar gained during early trade on Friday, as investors sought higher-yielding currencies. One USD/NZD price was recorded at 1.138690 and against INR; NZD was recorded at 52.7902.

However, at 10 am, the Rupee recorded 60.10 per dollar and the price of other major currencies versus dollar is as below:

Symbol Currencies Value vs. Dollar Value Vs. INR Change % Change
EUR/USD Euro 1.3625 81.90 +0.0012 +0.09
USD/JPY Japanese Yen 101.3950 0.59 -0.2800 -0.28
GBP/USD British Pound Sterling 1.7042 102.42 +0.0016 0.09
USD/CAD Canadian dollar 1.0681 56.25 -0.0005 -0.10
USD/HKD Hong Kong dollar 7.7514 7.7546 -0.0005 -0.01
USD/CNY Chinese- Yuan Renminbi 6.2218 9.6516 -0.0102 0.16
AUD/USD Australian dollar 0.9436 56.71 +0.0024 0.25

On Thursday, RBI released the Financial Stability Report (FSR) for June 2014. The report aimed to promote awareness about fraud in the financial system. The banking sector, mainly Public Sector banks, faces major challenges.

"In the context of India's pension sector, inadequate liability computation in case of several defined benefit pension schemes can be a potential source of fiscal stress in years to come," Alpana Killawala, Principal Chief General Manager from RBI, said in a press release.

During the one day Reverse Repo Auction on Thursday evening, RBI purchased 26 securities for 103.19 billion at a seven percent rate. Moreover, the reference rate for US $ and Euro was fixed at 60.1618 and 82.0440 respectively.

The economic stability and recovery looks brighter after the formation of the new government, though supply side issues need to be solved to help the monetary policy bring down inflation, Reserve Bank of India told Reuters.