Rupee settles higher against greenback

Indian rupee ended higher against dollar on Wednesday, on persistent selling of the American currency by exporters. Traders took some solace with Minister of State for Finance Pankaj Chaudhary’s statement that increased tax collection in the first quarter this fiscal shows that the economy is on the recovery path. Traders overlooked IMF’s report in which it has sharply scaled down India’s economic growth projection by 300 basis points to 9.5 per cent for the current financial year from 12.5 per cent estimated earlier in April. IMF said the downward revision is owing to lack of access to vaccines and possibility of renewed waves of coronavirus. On the global front, dollar made marginal gains on Wednesday with investors holding off on placing major bets ahead of the outcome of a U.S. Federal Reserve meeting.

Finally, the rupee ended 74.38, stronger by 9 paise from its previous close of 74.47 on Tuesday. The currency touched a high and low of 74.49 and 74.31 respectively.