Rising for the second consecutive day, Indian rupee ended higher against dollar on Wednesday, on weak dollar in overseas markets. Sentiments were upbeat as Commerce and Industry Minister Piyush Goyal’s states that India attracted ‘record’ foreign direct investments (FDI) in the last seven years. And this trend is expected to continue in the coming years as well on account of major structural reforms being undertaken by the government. Additional support also came in with report stating that the Reserve Bank of India’s low interest rates will continue to boost demand in the Indian economy, even if the government scales back pandemic support. However, volatility in the Indian stock markets capped the gains. On the global front; pound briefly climbed to a one-week high versus the U.S. dollar and a 21-month high against the euro on Wednesday after data showed UK inflation surged to a 10-year high last month, boosting expectations of a rate hike as early as next month.
Finally, the rupee ended 74.28 (provisional), stronger by 9 paise from its previous close of 74.37 on Tuesday. The currency touched a high and low of 74.51 and 74.25 respectively.
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