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Rupee extends gains for 2nd day

29 Jul 2022 Evaluate

The rupee ended considerably stronger against US dollar in its second day of gains on Friday amid fresh selling of the American currency by banks and exporters and rally in Indian equities. Traders took encouragement as the commerce ministry said the manufacturing sector attracted foreign direct investments worth $21.34 billion in 2021-22, an increase of 76 per cent year-on-year. Sentiments also remained positive, amid a private report stating that India received the highest aid for trade in 2020 at $2.7 billion from developed countries even as the receipts declined during the pandemic year compared to $3.9 billion received in 2019. The World Trade Organisation-led aid for trade flows is particularly meant for the least developed economies. It consists of official development support to build supply-side capacity and trade-related infrastructure to enable such countries to participate in international trade. On the global front, yen surged on Friday and is on track for its biggest weekly rise in four months against the dollar on bets that U.S. interest rates are nearing a peak after data showed the world's biggest economy unexpectedly contracted in the June quarter.

Finally, the rupee ended at 79.24 (provisional), stronger by 45 paisa from its previous close of 79.69 on Thursday. The currency touched a high and low of 79.56 and 79.17 respectively. 

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