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Rupee ends substantially stronger against greenback

30 Dec 2021 Evaluate

Indian rupee strengthened substantially against dollar on Thursday as banks and exporters continued to sell the US currency amid persistent capital inflows. Sentiments were upbeat as Federation of Indian Export Organisations (FIEO) stated that the country’s exports are expected to register healthy growth rate in the next financial year (FY23) might touch $530 billion as exporters are flushed with orders. FIEO further stated that additional exports will come from some of the PLI (production-linked incentive) sectors in the next fiscal. Meanwhile, Reserve Bank of India’s (RBI’s) second Financial Stability Report (FSR) stated that the Omicron variant of coronavirus remains the major challenge along with rising inflation pressures, though the economy has steadily gained momentum and remained resilient since the second quarter of the current fiscal. On the global front, dollar rose against major rival currencies in holiday-thinned trading on Thursday, as investors remained cautiously optimistic about the economic consequences of a surge in cases of the Omicron coronavirus variant.

Finally, the rupee ended 74.42 (Provisional), stronger by 29 paise from its previous close of 74.71 on Wednesday. The currency touched a high and low of 74.65 and 74.38 respectively.

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