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Rupee ends higher for third straight session

14 Jan 2021 Evaluate

Indian rupee ended higher against the American currency on Thursday, due to selling of the US currency by exporters and banks. This is the third consecutive session when the rupee is traded higher against dollar. Sentiments were positive as India’s inflation based on wholesale price index (WPI) eased to 1.22% (provisional) for the month of December 2020 as compared to 2.76% during the corresponding month of the previous year. Some support also came with private report that economic activity continued with its pace of normalisation and the festivities helped narrow the deficits as compared to the year-ago period in December. It also revised up wits FY21 GDP forecast to a contraction of 6.7 per cent, as against the official estimate of a 7.7 per cent contraction in the pandemic-impacted fiscal year. On the global front, pound rose on Thursday as pushed-back expectations for negative interest rates from the Bank of England and hopes for a quicker economic recovery in Britain given its lead in vaccinations across Europe buoyed the currency.

Finally, the rupee ended at 73.04, 11 paise stronger from its previous close of 73.15 on Wednesday. The currency touched a high and low of 73.18 and 72.97 respectively. The reference rate for the dollar stood at 73.15, and for Euro stood 89.34 on January 13, 2021. While the reference rate for the Yen stood at 70.55, the reference rate for the Great Britain Pound (GBP) stood at 100.06.

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