Erasing prevision three session losses, Indian rupee ended considerably higher against dollar on Thursday due to selling of US currency by exporters and banks. Sentiments were upbeat as Moody's Investors Service has said it will upgrade the country’s rating if there is an increase in growth potential and sustained decline in government debt. The rating agency had raised India's sovereign rating outlook to 'stable', from 'negative', while affirming the 'Baa3' rating - which is the lowest investment grade, just a notch above junk status. Adding more support, Chief Economic Adviser K V Subramanian said the impact of 'taper tantrum' or withdrawal of monetary stimulus by the US Federal Reserve on India may not be much given the strong fundamentals of the country's economy. Besides, healthy gains on the domestic bourses also supported rupee. On the global front, dollar held close to 14-month high against the euro on Thursday, as a surge in energy prices raised the risk for the U.S. Federal Reserve to act sooner to normalize policy.
Finally, the rupee ended 74.79, stronger by 19 paise from its previous close of 74.98 on Wednesday. The currency touched a high and low of 74.93 and 74.70 respectively.
