Rupee settles higher against dollar on Thursday

Indian rupee ended higher against dollar on Thursday, on persistent selling of the American currency by exporters. Sentiments were upbeat after government data showed that retail inflation for industrial workers rose to 6.08 per cent in October from 6.49 per cent in September 2022 mainly due to lower prices of certain food items. Besides, India's factory activity expanded at its fastest pace in three months in November, signalling resilient demand despite deteriorating global economic conditions as input cost inflation fell to a two-year low. The Manufacturing Purchasing Managers' Index, compiled by S&P Global, rose to 55.7 last month compared with 55.3 in October, marking the seventeenth successive month of expansion in manufacturing production across India. On the global front, sterling rose to a near 16-week high against a broadly-soft dollar on Thursday, with currency traders looking past gloomy British manufacturing data for now.

Finally, the rupee ended at 81.22 (Provisional), stronger by 8 paise from its previous close of 81.30 on Wednesday. The currency touched a high and low of 81.32 and 80.98 respectively.