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Rupee ends stronger for second straight session

16 Feb 2022 Evaluate

Rising for the second consecutive day, Indian rupee ended higher against dollar amid signs of de-escalation in the conflict between Russia and Ukraine. Russian defence ministry stated that it’s an end of Crimea military drills. The Russian defence ministry shared a video of Russian military equipment and forces leaving Crimea. The move comes after Moscow said that some of its troops are returning to home bases, indicating cooling of tensions regarding the Ukraine issue. Additional support came in as SBI research report stated that India can add $20 billion to its Gross Domestic Product (GDP) if the country can reduce by 50 per cent the dependence on imports from China by leveraging the production linked incentive schemes. Meanwhile, finance ministry’s monthly economic review said that Indian economy is poised to grow at the quickest pace among the league of large nations on the back of various initiatives taken by the government in Budget 2022-23. On the global front, dollar edged slightly lower on Wednesday as investors became less worried about the risk of Russia invading Ukraine and waited for the release of minutes from the U.S. Federal Reserve's January meeting.

Finally, the rupee ended at 75.09 (Provisional), stronger by 23 paise from its previous close of 75.32 on Tuesday. The currency touched a high and low of 75.24 and 74.96 respectively.

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