Rising for third straight session, Indian rupee strengthened substantially against dollar on Wednesday, owing to dollar sale by exporters and banks and healthy gains in domestic equity markets. Sentiments remained positive as ICRA stated that the IT services companies are expected to see growth in revenue, driven by robust demand for digital technologies resulting in higher awards of contracts. Further, the growth in the financial year 2021-22 will be supported by the pent-up demand of the financial year 2020-21 that was lower due to the initial impact of COVID-19. Traders ignored report that India’s service sector remained into contraction territory in the month of July, largely due to the COVID-19 pandemic and local restrictions. As per the survey report, the seasonally adjusted Nikkei Services Business Activity Index stood at 45.4 in July from 41.2 in June. On the global front, sterling ticked higher against the dollar on Wednesday, buoyed by risk sentiment in markets, optimism over the outlook for COVID-19 in Britain, and anticipation of a hawkish turn from the Bank of England when it meets on Thursday.
Finally, the rupee ended 74.19, stronger by 9 paise from its previous close of 74.28 on Tuesday. The currency touched a high and low of 74.24 and 74.08 respectively.
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