Indian rupee continued its upward momentum for the second day and ended fairly higher against US dollar on Wednesday, on the back of selling of the American currency by exporters. Sentiments were upbeat as India's services activity expanded at the fastest rate in a year during February, while employment fell further and companies noted the sharpest rise in overall expenses. Additional support came with Former Niti Aayog Vice Chairman Arvind Panagariya’s statement that India's economy is on an ‘upswing’ and the government's plans for increased spending comes in the backdrop of pro-growth reforms. However, firm trade in Indian equity markets also added to rupees strength. On the global front; sterling steadied against the dollar on Wednesday and gained against the euro ahead of the announcement of Britain's budget for the coming fiscal year, which is expected to prop up the economy as it prepares for a reopening from lockdowns.
Finally, the rupee ended at 72.72, 65 paise stronger from its previous close of 73.37 on Tuesday. The currency touched a high and low of 73.26 and 72.71 respectively. The reference rate for the dollar stood at 73.35, and for Euro stood 88.20 on March 02, 2021. While the reference rate for the Yen stood at 68.66, the reference rate for the Great Britain Pound (GBP) stood at 101.90.
