Reversing previous session losses, Indian rupee ended significantly higher against dollar on Thursday, owing to dollar sale by exporters and banks. Traders took some solace with report that V-shaped recovery in the first quarter of 2021-22, despite the brutal second wave of the coronavirus pandemic, is a testimony to India's strong macroeconomic fundamentals. However, upside remain capped with India Ratings and Research’s (IndRa) report states that India Inc resorted to salary cuts to protect their profits in the June quarter, as revenues came under pressure due to the second pandemic wave that affected nearly the entire country. The weak wage growth will prove to be a drag on the overall economic recovery in the medium term as it will affect household consumption. On the global front, sterling ticked higher on Thursday after British lawmakers backed Prime Minister Boris Johnson's tax hikes and was set to end three straight days of losses.
Finally, the rupee ended 73.50, stronger by 10 paise from its previous close of 73.60 on Wednesday. The currency touched a high and low of 73.85 and 73.48 respectively.
