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Rupee ends stronger against US dollar

30 Aug 2022 Evaluate

Indian rupee strengthened against the US dollar on Tuesday, on persistent selling of the American currency by exporters and banks. Besides, dollar’s weakness against some other currencies overseas along with a firm trend in domestic equities supported the rupee sentiment. Traders took encouragement with Economic Advisory Council to the Prime Minister (EAC-PM) Chairman Bibek Debroy’s statement that Indian economy's size will touch $20 trillion by 2047 provided the annual average growth is 7-7.5 percent in the next 25 years. He also said the country's annual per capita income will be over $10,000 if the country grows at an average economic growth rate of 7-7.5 percent in the next 25 years. Some optimism also came with a joint survey conducted by industry body FICCI and Indian Banks' Association revealing that the economic activity in India is in recovery mode as growth seen broad basing with most sectors operating at pre-pandemic levels. On the global front, euro climbed past parity against a softening dollar on Tuesday, ahead of German inflation that will help indicate the likelihood of a super-sized European Central Bank rate hike.

Finally, the rupee ended at 79.52 (Provisional), stronger by 39 paisa from its previous close of 79.91 on Monday. The currency touched a high and low of 79.92 and 79.43 respectively.

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