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Rupee rises for second straight day

31 Dec 2021 Evaluate

Rising for the second consecutive day, Indian rupee ended higher against dollar on Friday, tracking positive domestic equities amid year-end dollar selling by banks and exporters. Sentiments remained buoyant as India’s agricultural and processed food exports have grown at a steady pace in the last decade notwithstanding several logistical challenges faced in the global trade of the commodities. Exports of agricultural and processed food products under Agricultural and Processed Food Products Export Development Authority (APEDA) basket rose to $20,674 million (Rs 15,30,50 crore) during 2020-21, from $17,321 million (Rs 83,484 crore) in 2011-12. Traders remained positive as India Ratings and Research’s (Ind-Ra) statement that higher tax and non-tax revenue collections this fiscal are expected to more than offset the shortfall in disinvestment revenue, leading to the fiscal deficit coming in at 6.6 per cent of GDP in FY22, or 20 basis points lower than the budgeted target. On the global front, dollar strengthened on Friday against the basket of currencies.

Finally, the rupee ended 74.29 (Provisional), stronger by 13 paise from its previous close of 74.42 on Thursday. The currency touched a high and low of 74.38 and 74.10 respectively.

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