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Rupee ends substantially stronger against dollar

23 May 2022 Evaluate

Erasing previous session losses, Indian rupee ended substantially stronger on fresh selling of American currency by banks and exporters. Sentiments were upbeat as commerce and industry ministry said that total foreign direct investment (FDI) into India rose 2 per cent to the ‘highest ever’ $83.57 billion in 2021-22 on account of various measures like policy reforms and ease of doing business taken by the government. Total FDI comprises equity inflows, reinvested earnings and other capital. In 2020-21, the inflow stood at $81.97 billion. It was $74.39 billion in 2019-20 and $62 billion in 2018-19. However, unabated foreign fund outflows and firm crude oil prices weighed on the rupee and kept the appreciation bias capped. On the global front, euro rallied on Monday after the European Central Bank president said policymakers would likely to lift interest rates out of the negative territory by September.

Finally, the rupee ended at 77.55 (Provisional), stronger by 15 paise from its previous close of 77.70 on Friday. The currency touched a high and low of 77.69 and 77.51 respectively.

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