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Rupee ends significantly higher against dollar

20 Jul 2021 Evaluate

Reversing previous session losses, Indian rupee ended significantly higher against dollar on Tuesday, owing to dollar sale by exporters and banks. Sentiments were upbeat as Union minister Pankaj Chaudhary states that Indian economy is showing signs of revival since the peaking of the second COVID wave in the first half of May on the back of targeted fiscal relief, strong push for capital expenditure, RBI's monetary policy measures, and a rapid vaccination drive. Adding more optimism, unemployment rate fell to a six-month low of 5.98% for the week ended July 18 after inching up to 7.64% in the previous week. During the week ended July 18, the rate of joblessness fell in both urban and areas to 7.9% and 5.1% from 8.9% and 7.06%, respectively, in the previous week. On the global front, pound hit a five-month low against the dollar and traded close to a five-week low against the euro on Tuesday, as broad demand for the safe-haven dollar amid a global surge in coronavirus infections kept investors jittery.

Finally, the rupee ended 74.61, stronger by 27 paise from its previous close of 74.88 on Monday. The currency touched a high and low of 74.95 and 74.55 respectively.

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