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Rupee settles higher against dollar on Friday

20 Jan 2023 Evaluate

Indian rupee settled higher against dollar on last trading day of week despite weak domestic equities. Traders took some support with the Reserve Bank of India’s (RBI) January 2023 Bulletin stating that lead indicators suggest that domestic current account deficit (CAD) is likely to reduce in 2023, while macro-economic stability has received a boost from inflation being brought back to the official tolerance band. Besides, foreign institutional investors (FII) bought shares worth Rs 399.98 crore on January 19, 2023. On the global front,  dollar hovered around seven-month lows on Friday as a slew of data feeds concern among investors that an economic slowdown could be unavoidable, while a bout of profit-taking forced the yen to retreat.

Finally, the rupee ended at 81.18 (Provisional), stronger by 18 paise from its previous close of 81.36 on Thursday. The currency touched a high and low of 81.28 and 81.09 respectively.

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