Indian rupee ended slightly higher against dollar on Wednesday, on selling of the American currency by exporters. Traders took some support as India's services sector expanded for the fourth consecutive month in January as business activities quickened and rising business optimism is set to sustain the growth momentum. The seasonally-adjusted India Services Business Activity Index rose from 52.3 in December to 52.8 in January, pointing to a quicker expansion in output. Adding optimism, signaling a recovery, merchandise exports in January 5.4% from a year before, the highest since September 2020 and compared with a 0.1% rise in December. Imports, too, recorded a second successive month of growth, though the pace of expansion slowed from the January level, reflecting the fragile state of domestic demand. On the global front; euro traded near a 2-month low against the dollar on Wednesday, as investors looked to a widening disparity between the strength of U.S. and European pandemic recoveries.
Finally, the rupee ended at 72.95, 1 paise stronger from its previous close of 72.96 on Tuesday. The currency touched a high and low of 72.98 and 72.92 respectively. The reference rate for the dollar stood at 72.98, and for Euro stood 88.11 on February 02, 2021. While the reference rate for the Yen stood at 69.53, the reference rate for the Great Britain Pound (GBP) stood at 99.86.
