Erasing previous session drubbing, Indian rupee ended higher against dollar on Thursday, owing to dollar sale by exporters and banks. Traders got encouragement as India witnessed the sharpest rise among the Asian economies, with a six-position jump from 43rd to 37th rank on the annual World Competitiveness Index compiled by the Institute for Management Development, largely due to gains in economic performance. However, upside remain capped as RBI Deputy Governor M Rajeshwar Rao said that despite the improvement in asset quality, financial institutions, including banks, need to proactively undertake stress testing of loan books to examine their loss absorption limits and take steps to improve them wherever required. On the global front, dollar retreated from a 20-year high on Thursday after the Federal Reserve delivered its biggest rate hike in decades but then tempered its outlook by telling investors that such sharp moves higher were unlikely to become a habit.
Finally, the rupee ended at 78.10 (Provisional), stronger by 12 paise from its previous close of 78.22 on Wednesday. The currency touched a high and low of 78.12 and 78.00 respectively.
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