Indian rupee ended stronger against dollar on Thursday due to fresh selling of the American currency by banks and exporters. The rupee also derived its strength from strong gains in the local equity markets. Sentiments got boost as India’s COVID cases are beginning to decline and several states are announcing a gradual easing of restrictions. Some support also came in as Minister of State for Finance Anurag Thakur said the Indian economy is resilient, and will rebound based on reforms that have ensured strong fundamentals. Traders seem to have overlooked report that India's services sector activities slumped into contraction territory for the first time in eight months, amid renewed decline in new work intakes due to the escalation of the pandemic and the reintroduction of restrictions. The seasonally adjusted India Services Business Activity Index fell to 46.4 in May, down from 54.0 in April. On the global front; dollar rose on Thursday as traders awaited a batch of U.S. economic data that could set the tone at central bank meetings later this month.
Finally, the rupee ended 72.91, stronger by 18 paise from its previous close of 73.09 on Wednesday. The currency touched a high and low of 73.18 and 72.91 respectively.
