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Rupee snaps losing streak; ends higher by 28 paise

15 Feb 2022 Evaluate

Snapping 5-day drubbing, Indian rupee appreciated significantly against dollar on Tuesday, tracking recovery in domestic equities and weakness of the American currency overseas. Sentiments were upbeat with report that India’s merchandise exports rose 25.28 per cent to $34.50 billion in January 2022 as compared to $27.54 billion in January 2021, on account of healthy performance by sectors such as engineering, petroleum and gems and jewellery. In another positive development, India and the UAE are likely to sign a free trade agreement (FTA) on February 18, under which both the countries could give duty-free access to a number of products from different sectors. Traders shrugged off report that retail inflation soared to a seven-month high of 6.01 per cent in January, breaching the upper tolerance level of the Reserve Bank, driven by rising prices certain food items. On the global front, euro rebounded on Tuesday, nearly erasing all of Monday's losses, after reports that some Russian troops in areas near Ukraine have started returning to their bases.

Finally, the rupee ended at 75.32 (Provisional), stronger by 28 paise from its previous close of 75.60 on Monday. The currency touched a high and low of 75.72 and 75.31 respectively.

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