Rupee snaps three-day losses to trade higher against US Dollar on strong domestic markets

The local unit finally settled at 75.52 a dollar, down 16 paise over its previous close.

Oct 13, 2021 11:10 IST India Infoline News Service

The Indian rupee snapped three days’ losing streak and trading higher against US Dollar on positive macroeconomic data and rally in the domestic equity market. Besides, lower crude prices and a weak American currency in overseas markets boosted the local unit

At the interbank foreign exchange, the rupee opened strong at 75.29 against the US dollar, then rose further to 75.26/$, registering a gain of 26 paise over the last close.

The local unit finally settled at 75.52 a dollar, down 16 paise over its previous close.

On the domestic equity market front, the 30-share Sensex was trading 377 points or 0.63% higher at 60,661, while the broader NSE Nifty surged 151 points or 0.84% to 18,143.

On the macro front, India’s retail inflation eased again in September, government data showed on Tuesday. Consumer price inflation fell sharply to 4.35% in September from 5.3% in August. The Consumer Price Index-based (CPI) inflation was at 7.27% in September 2020. The Index of Industrial Production has risen 11.9% yoy for the month of August as against 11.5% in July, fresh data showed. Last year in August, the IIP had contracted 7.1%.

The International Monetary Fund on Tuesday cut its global growth forecast, citing supply chain challenges and persistent Covid spread. The IMF said central banks like the Federal Reserve should be prepared to tighten monetary policy if inflation runs too hot. India’s economy, which contracted by 7.3% due to the COVID-19 pandemic, is expected to grow by 9.5% in 2021 and 8.5% in 2022, according to the latest projections released by the International Monetary Fund.

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