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Indian rupee ends stronger against dollar
Jan-13-2022

Indian rupee ended stronger against dollar due to fresh selling of the American currency by banks and exporters. Traders got some support with the World Bank’s statement that Narendra Modi government’s Production-Linked Incentive (PLI) Scheme will likely help India’s economy grow at 8.7% in the next financial year 2022-23, beating emerging market peers including China. Some support also came as India and UK formally launched negotiations for the proposed free trade agreement (FTA), which is expected to help double bilateral trade by 2030 and boost economic ties between the two countries. However, upside remain capped as retail inflation quickened to a six-month high of 5.59% in December from a year before and industrial production growth nosedived to a nine-month low of 1.4% in November, presenting a double whammy for policy-makers as they brace for the next year’s Budget. On the global front, dollar fell further on Thursday to two-month lows after U.S. inflation proved weaker than feared in December, prompting investors to cut crowded long positions in the currency.

Finally, the rupee ended 73.90, stronger by 3 paise from its previous close of 73.93 on Wednesday. The currency touched a high and low of 73.97 and 73.84 respectively.

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