Indian rupee trimmed some of its early gains but still ended higher against the American currency on Tuesday, as fresh sale of the US currency by exporters paced up. Local currency got some support with report that India Inc said the spike in inflation, which rose to over 4-year high of 5.77 per cent in June, was temporary as it is caused by disruptions in supply chain, and inflation is expected to be benign on the back of a good monsoon in the near future. Some optimism also spread among the local traders with private report projecting the Indian economy to record 7.4% growth in 2018-19. However, strength in dollar overseas, as investors awaited US Federal Reserve Chairman Jerome Powell’s first congressional testimony for hints on the pace of interest rate hikes, capped rupee’s gains.
Finally, the rupee ended at 68.46, 12 paise stronger from its previous close of 68.58 on Monday. The currency touched a high and low of 68.46 and 68.27 respectively.
