Indian rupee ended stronger against dollar on Tuesday due to fresh selling of the American currency by banks and exporters. Sentiments were optimistic with report that Finance Minister Nirmala Sitharaman said the government is taking steps to carefully monitor the fiscal deficit, which is estimated at 9.5 percent of the GDP for the current financial year. Additional support came as European Union stated that its first high-level dialogue on trade with India saw interest by both sides in resuming negotiations for an ambitious, comprehensive and mutually beneficial trade and investment pact once their respective approaches and positions are ‘close enough’. On the global front, sterling hit its highest level against the dollar since April 2018 and traded just below eight-month highs against the euro on Tuesday.
Finally, the rupee ended at 72.87, 10 paise stronger from its previous close of 72.97 on Monday. The currency touched a high and low of 72.92 and 72.85 respectively. The reference rate for the dollar stood at 72.86, and for Euro stood 87.71 on February 08, 2021. While the reference rate for the Yen stood at 69.05, the reference rate for the Great Britain Pound (GBP) stood at 100.04.
