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Rupee settles higher against dollar

17 May 2022 Evaluate

Indian rupee ended higher against dollar on persistent selling of the American currency by exporters. Traders got support as Sanjiv Bajaj, the newly-elected president of industry body CII, said the Reserve Bank’s decision to raise benchmark interest rates and the likelihood of a good monsoon will help in containing inflation. Traders shrugged off report where wholesale price-based inflation soared to a record high of 15.08 per cent in April mainly on account of spiralling prices of food, fuel and other commodities, which may prompt the Reserve Bank to hike interest rates in upcoming monetary policy review next month. On the global front, dollar eased for a third straight day on Tuesday as a jump in sentiment across global markets encouraged investors to trim bets on the safe haven currency, which hit a two-decade high last week.

Finally, the rupee ended at 77.47 (Provisional), stronger by 8 paise from its previous close of 77.55 on Friday. The currency touched a high and low of 77.79 and 77.47 respectively.

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