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Rupee ends fairly higher against greenback

01 Jun 2022 Evaluate

Erasing previous session losses, Indian Rupee ended fairly higher against US dollar on Wednesday. Sentiments were upbeat with data showing that India's fiscal deficit stood at 6.7 percent of GDP in 2021-22 on higher tax receipts and prudent expenditure, lower than 6.9 percent estimated in the national budget tabled in February. The improved fiscal performance will reduce the extent of fiscal roll back required in the current fiscal year compared to the last. Additional support also came as monthly survey said that India's manufacturing sector growth steadied in May, with new orders and production increasing at similar rates to those registered in the previous month, while demand showed signs of resilience and improved further despite another uptick in selling prices. The seasonally adjusted S&P Global India Manufacturing Purchasing Managers' Index (PMI) stood at 54.6 in May, little changed from 54.7 in April, pointing to a sustained recovery across the sector. On the global front, euro edged further away from a one-month high on Wednesday and the U.S. dollar nudged up, lifted by higher Treasury yields as global inflation worries flared anew.

Finally, the rupee ended at 77.52 (Provisional), stronger by 19 paise from its previous close of 77.71 on Tuesday. The currency touched a high and low of 77.62 and 77.51 respectively.

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