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Rupee ends tad higher against greenback on Monday

03 Jan 2022 Evaluate

Indian rupee ended marginally higher against dollar on Monday, on persistent selling of the American currency by exporters. Traders remained positive as data showing that growth of eight core infrastructure industries grew 3.1 percent in November 2021 as against 1.1 percent contraction in same month last year. In October 2021, these core sectors' output had grown by 8.4 percent. However, upside remain capped as India’s manufacturing activity lost some momentum in December easing to a three month low after hitting a 10 month high in November, amid fears that the rapidly spreading third wave of the Coronavirus (Covid-19) pandemic may hit consumer sentiment and output. As per the survey report, the Nikkei India Manufacturing Purchasing Managers’ Index (PMI) - a composite single-figure indicator of manufacturing performance - eased to 55.5 in December from November's ten-month high of 57.6. On the global front, dollar ticked up against its major rivals as an upbeat market mood on Monday lifted European equities and government bond yields for the first day of trading of 2022.

Finally, the rupee ended 74.28 (Provisional), stronger by 1 paise from its previous close of 74.29 on Friday. The currency touched a high and low of 74.47 and 74.25 respectively.

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