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Rupee rebounds against U.S. dollar on Wednesday

09 Mar 2022 Evaluate

Indian rupee ended substantially stronger on fresh selling of American currency by banks and exporters. Besides, retreat in crude oil prices and rebound in domestic equities also supported rupee. Sentiments were upbeat as rebound in risk assets and expectations of inflows in bond markets as global fund houses exclude the Russian debt from bond indices. In another positive development, Reserve Bank of India (RBI) has extended the interest equalisation scheme for pre and post shipment rupee credit for Ministry of Small and Medium Enterprises (MSME) exporters till March 2024 with the objective of boosting outbound shipments. On the global front, euro and other European currencies edged up on Wednesday ahead of this week's central bank meeting and supported by reports that the European Union was discussing joint bond issuance to finance energy and defence spending.

Finally, the rupee ended at 76.62 (Provisional), stronger by 38 paise from its previous close of 77.00 on Tuesday. The currency touched a high and low of 76.92 and 76.53 respectively.

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