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Rupee settles higher against dollar for second consecutive day

05 Jan 2023 Evaluate

Rupee settled higher against dollar on Thursday, supported by a weaker greenback overseas and declinein crude oil prices. Traders overlooked rating agency ICRA’s report stating that the evolving global macroeconomic headwinds could moderate growth for Indian IT services industry over the medium term. It has cited that given the Indian IT services industry generates about 60-65 per cent of revenues from the US market and 20-25 per cent from the European market, it remains susceptible to macroeconomic uncertainties and adverse regulatory changes in these key operating markets. On the global front, dollar was roughly flat in choppy trade on Thursday after the release of the latest Federal Reserve minutes. Details of the discussion from the central bank's December policy meeting, released on Wednesday, showed policymakers remain focused on curbing inflation and do not envisage interest rate cuts in 2023.

Finally, the rupee ended at 82.50 (Provisional), stronger by 32 paise from its previous close of 82.82 on Wednesday. The currency touched a high and low of 82.80 and 82.45 respectively.

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