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Rupee ends higher on Tuesday

07 Feb 2023 Evaluate

Indian rupee trimmed some of its early gains but still ended higher against the American currency on Tuesday, on continued dollar selling by banks and exporters. Sentiments got support with NITI Aayog CEO Parameswaran Iyer’s statement that India's production-linked incentive (PLI) scheme has attracted investment worth over Rs 45,000 crore and has also created three lakh jobs. The Indian government launched the PLI scheme in 2020. However, muted domestic equities, unabated foreign capital outflows and rising crude prices restricted the rupee’s rise. Traders also remained on sidelines ahead of the Reserve Bank of India's monetary policy decision due Wednesday. On the global front, dollar eased on Tuesday after its rally the previous day, but still hovered near a one-month peak as traders raised their bets on how high the U.S. Federal Reserve would need to raise interest rates to tame inflation.

Finally, the rupee ended at 82.70 (Provisional), stronger by 6 paise from its previous close of 82.76 on Monday. The currency touched a high and low of 82.80 and 82.62 respectively. 

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