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Rupee end higher for third straight session on Tuesday

31 Aug 2021 Evaluate

Indian rupee continued its upward momentum for the third day and ended fairly higher against US dollar on Tuesday following dovish comments by the US Federal Reserve chairman on interest rates. A strong rally in the domestic equity markets and weak American currency in the overseas markets also supported the rupee sentiment. Sentiments got boost with private report that India’s economy is expected to have grown in double digits during the April-June quarter of this financial year, helped by a low base of the previous year. The expected rebound in economic growth would also stand testament to the strong consumer activity, unfazed by the second wave of the covid-19 pandemic. First-quarter GDP numbers schedule to be release today. Additional support came as business resumption activity continued its northward journey and reached a new high, much above the pre-pandemic levels for the week ended August 29. On the global front; dollar was trading near three-week lows against a basket of currencies on Tuesday, as investors looked to U.S. jobs figures later this week for clues on stimulus taper timing.

Finally, the rupee ended 73.00, stronger by 29 paise from its previous close of 73.29 on Monday. The currency touched a high and low of 73.29 and 72.99 respectively.

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