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Rupee ends higher against dollar on Tuesday

27 Jun 2023 Evaluate

Indian rupee ended higher against the American currency on Tuesday amid a weak greenback in overseas markets and a rally in domestic equities. Traders got support after Reserve Bank of India data showed that India’s current account deficit (CAD) narrowed to USD 1.3 billion or 0.2 per cent of GDP in the January-March quarter of FY23, mainly due to moderation in the trade deficit and a robust increase in services exports. India's CAD decreased to USD 1.3 billion (0.2 per cent of GDP) in Q4:2022-23 from USD 16.8 billion (2.0 per cent of GDP) in Q3:2022-231, and USD 13.4 billion (1.6 per cent of GDP) a year ago. On the global front, dollar rose to a seven-month high against the yen on Tuesday, with investors on the look-out for possible intervention by Japan to boost the ailing currency. Meanwhile, the euro picked up against the dollar as investors listened closely to policymakers' speeches at the European Central Bank's annual forum at Sintra in Portugal.

Finally, the rupee ended at 82.03 (Provisional), higher by 1 paisa from its previous close of 82.04 on Monday. The currency touched a high and low of 82.03 and 81.95 respectively.

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