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Rupee rises for second straight day

25 Mar 2022 Evaluate

Rising for the second consecutive day, Indian rupee ended higher against dollar on Friday, on weak dollar demand in overseas markets. Traders took some solace with commerce ministry statement that India and the United Kingdom have concluded the second round of talks for the proposed free trade agreement (FTA), which aims at further strengthening the economic ties. The third round of negotiations is due to be hosted by India in April. Traders overlooked S&P Global Ratings’ report stating that the rising commodity prices, further triggered by the Russia-Ukraine war, could moderate healthy recovery of the country’s economy, and put pressure on the Reserve Bank of India (RBI) to normalise its monetary policy faster than anticipated. On the global front, euro was edging higher on Friday, but concerns about a potential slowdown of the economy kept it in a tight range, while the dollar weakened as investors priced in the expected monetary tightening from the Federal Reserve.

Finally, the rupee ended at 76.24 (Provisional), stronger by 9 paise from its previous close of 76.33 on Thursday. The currency touched a high and low of 76.29 and 76.12 respectively.

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