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Rupee ends fairly higher against greenback

05 Sep 2022 Evaluate

Erasing previous session's losses, Indian Rupee ended fairly higher against US dollar on Monday, on the back of selling of the American currency by exporters. Sentiments were upbeat as S&P Global in a report said India’s Services PMI rose to 57.2 in August from July’s 4-month low of 55.5, on stronger expansion in new work intakes, upturn in business activity, and the sharpest rise in employment for over 14 years. Additional support came with State Bank of India’s report that India is likely to become the third largest economy by 2029. India is currently ranked fifth largest economy. Besides, foreign investors have pumped in a little over Rs 51,200 crore into the Indian equity markets in August, making it the highest inflow in 20 months, amid improving risk sentiment and stabilisation in oil prices. Meanwhile, commerce ministry showed that India's exports contracted by 1.15 per cent to $33 billion and trade deficit more than doubled to 28.68 billion in August. Trade deficit in August 2021 stood at 11.71 billion. On the global front, euro sank below $0.99 to a new 20-year low on Monday after Russia's halt to gas supplies down its main pipeline to Europe heightened fears about a deepening energy crisis across the region.

Finally, the rupee ended at 79.78 (Provisional), stronger by 9 paisa from its previous close of 79.87 on Friday. The currency touched a high and low of 79.90 and 79.78 respectively.

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