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Rupee ends substantially stronger against dollar

02 Mar 2021 Evaluate

Indian rupee ended substantially stronger on Tuesday on fresh selling of American currency by banks and exporters. Besides, healthy growth in the domestic equity market also added to the rupee gains. Traders took support with the finance ministry’s statement that GST collections crossed the Rs 1 lakh crore-mark for the fifth month in a row in February, rising 7 per cent annually to over Rs 1.13 lakh crore, indicating economic recovery. Adding optimism, Crisil report stated that on the back of timely government and regulatory measures this fiscal, which helped the economy to recover faster than expected, bank credit is seen growing 400-500 bps to 9-10 percent in the next financial year. Traders overlooked report that Biden administration has told the US Congress that India's recent emphasis on import substitution through the ‘Make in India’ campaign has ‘epitomised’ the challenges facing the bilateral trade relationship. Meanwhile, RBI remained net buyer of the US dollar in December after it purchased $3.991 billion from the spot market. On the global front, dollar rose to its highest level in a month against its basket on Tuesday and riskier currencies fell back, as underlying concerns about rising bond yields drove investors back into safe-haven assets.

Finally, the rupee ended at 73.37, 18 paise stronger from its previous close of 73.55 on Monday. The currency touched a high and low of 73.48 and 72.31 respectively. The reference rate for the dollar stood at 73.29, and for Euro stood 88.58 on March 01, 2021. While the reference rate for the Yen stood at 68.78, the reference rate for the Great Britain Pound (GBP) stood at 102.49.

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