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Rupee appreciates against dollar after four day of losses

22 Nov 2022 Evaluate

Indian Rupee snapped four day of losses to close higher against US dollar on Tuesday on the back of selling of the American currency by exporters. Traders got support after India and the European Union (EU) signed an agreement on cooperation in areas such as climate modelling and quantum technologies, building on the Trade and Technology Council launched by the two sides earlier this year. Traders ignored that rating agencies Crisil and Icra revised down their India growth projections for the current fiscal and the second quarter mainly due to the ripple effect of slowdown in global growth and mixed crop output. Crisil downgraded the India growth forecast by 30 bps to 7 per cent while Icra pegged the economic expansion at 6.5 per cent for the second quarter of FY2022-23. On the global front, the pound rose on Tuesday after falling in the previous session, as the dollar retreated following three days of gains. The greenback - typically the driver of global currency markets - rose sharply on Monday as a jump in COVID-19 cases in China sparked growth fears and sent investors towards the safe-haven currency, causing the pound to drop 0.59%.

Finally, the rupee ended at 81.67 (Provisional), stronger by 12 paisa from its previous close of 81.79 on Monday. The currency touched a high and low of 81.83 and 81.64 respectively.

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