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Rupee ends marginally higher against dollar

27 Dec 2021 Evaluate

Continuing gaining rally, Indian rupee strengthened marginally against dollar on Monday, owing to dollar sale by exporters and banks. Sentiments were positive as a member of the Monetary Policy Committee (MPC) of the Reserve Bank, Jayanth R Varma expressed hope that in a few quarters from now, capital investment would begin to pick up even in the old economy, and said the next fiscal year is also expected to witness a decent growth. However, upside remained capped as country’s foreign exchange reserves declined by $160 million to stand at $635.667 billion in the week to December 17. During the reporting week ended December 17, the dip in the forex kitty was on account of a decline in foreign currency assets (FCAs), a major component of the overall reserves. On the global front, dollar was range bound, despite a hawkish turn at the Federal Reserve that saw policymakers signalling three quarter-point rate hikes next year.

Finally, the rupee ended 75.00 (Provisional), stronger by 3 paise from its previous close of 75.03 on Friday. The currency touched a high and low of 75.16 and 74.95 respectively.

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