Erasing previous three session losses, Indian rupee ended considerably higher against dollar due to selling of the US currency by exporters and banks. Traders shrugged off ratings agency ICRA’s latest report stating that the states are shelling out more for debt funds, with the weighted average cost for their debt auctions hardening by 9 basis points (bps) to touch 7.24 per cent, the highest level so far this fiscal, during the auctions on January 18, 2022. Compared to the previous week, the cost has gone up by 9 bps. From the first auctions in January, the cut-offs have been trending over 7 per cent. On the global front, sterling held close to a 23-month high against the euro and edged up against the dollar after higher-than-expected British inflation data added to pressure on the Bank of England to raise interest rates next month.
Finally, the rupee ended 74.43 (Provisional), stronger by 15 paise from its previous close of 74.58 on Tuesday. The currency touched a high and low of 74.70 and 74.32 respectively.
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