Snapping 2-day losing streak, Indian rupee appreciated against dollar on Tuesday owing to dollar sale by exporters and banks. Traders took support with private report stating that the economy is likely to register a 9.5 per cent growth this fiscal over 7.3 per cent contraction last year, as the ongoing recovery is faster and more credible than earlier foreseen. Traders also took support with Engineering Export Promotion Council (EEPC) chairman Mahesh Desai stating that exports of engineering goods have crossed $9 billion in September 2021, while 22 out of 25 top export destinations such as China, the UK, and UAE have recorded positive growth. It said share of engineering goods in overall merchandise exports stood at 26.65 percent in September. Domestic currency also derived its strength from healthy gains in the local equity markets. On the global front; sterling touched a new 20-month high against the euro on Tuesday, driven by diverging interest rate expectations for Britain and the eurozone, though concerns over economic growth and EU ties kept the currency broadly flat on the day.
Finally, the rupee ended 74.96, stronger by 12 paise from its previous close of 75.08 on Monday. The currency touched a high and low of 75.10 and 74.97 respectively.
