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Rupee ends higher for second straight session

07 May 2021 Evaluate

Continuing previous session gains, Indian rupee ended higher against dollar on Friday, owing to dollar sale by exporters and banks. Strong gains in domestic equity markets also provided support to rupee. Sentiments were upbeat as Finance Ministry released the second monthly installment of revenue deficit grant of Rs 9,871 crore to 17 states. With the release of the second installment, a total amount of Rs 19,742 crore has been released in the first two months of the current financial year as Post Devolution Revenue Deficit Grant to the states. Adding more optimism, Union Ministry of Finance in its monthly economic review for April states that the second wave of the Covid-19 pandemic poses risks to economic activity but the impact will be ‘muted’ when compared to the first wave. On the global front; sterling was a touch higher versus the dollar and steadied against the euro on Friday, but was on track for weekly gains against both as traders watched for British election results.

Finally, the rupee ended 73.51, stronger by 26 paise from its previous close of 73.78 on Thursday. The currency touched a high and low of 73.76 and 73.50 respectively.

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