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Rupee snaps two-day fall on Wednesday
Sep-27-2023

Indian Rupee ended higher against the US dollar on Wednesday amid positive cues from domestic equity markets. Investors got support after the government extended export benefits under the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme for one more year till June 2024. The Scheme for RoDTEP provides for refund of taxes, duties and levies that are incurred by exporters in the process of manufacturing and distribution of goods and are not being reimbursed under any other mechanism at the centre, state or local level. Meanwhile, central government has decided to stick to its market borrowing plan of Rs 6.55 trillion in the second half (October-March) of financial year 2023-24 (H2FY24), brushing aside pressure from tepid revenue growth and rising subsidy burden in the pre-election year. This will include the issuance of sovereign green bonds worth Rs 20,000 crore, as against the Rs 16,000 crore maiden green bonds issued in FY23. On the global front, sterling fell against a strengthening dollar on Wednesday as markets are pricing in that the Bank of England (BoE) is done hiking interest rates as the economy deteriorated, while British inflation subsided.

Finally, the rupee ended at 83.22 (Provisional), stronger by 6 paise from its previous close of 83.28 on Tuesday. The currency touched a high and low of 83.24 and 83.18 respectively.


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