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Rupee ends higher for third straight day

05 Jan 2024 Evaluate

Indian rupee ended higher for third straight day against the US dollar on Friday, on persistent selling of dollars by banks and exporters. Sentiments remained positive with the United Nations (UN) World Economic Situation and Prospects (WESP) 2024 report stating that India’s Gross domestic product (GDP) growth is projected to remain strong at 6.2 per cent in 2024 mainly supported by resilient private consumption and strong public investment. Some support also came with data showing that India's services sector ended 2023 on a firm footing, with activity expanding at its fastest pace in three months in December on buoyant demand and an optimistic year-ahead outlook. The HSBC India Services Purchasing Managers' Index, compiled by S&P Global, rose sharply in December to 59.0 from November's one-year low of 56.9. However, rising crude oil prices in international markets and a strong greenback overseas restricted gains for the local unit. On the global front, the dollar rose on Friday, heading for its steepest weekly rise since May as traders scaled back expectations of early U.S. interest rate cuts this year.

Finally, the rupee ended at 83.15 (Provisional), stronger by 9 paise from its previous close of 83.24 on Thursday. The currency touched a high and low of 83.24 and 83.12 respectively. 


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