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Rupee settles higher against greenback
May-13-2022

Indian rupee ended higher against dollar on Friday, on persistent selling of the American currency by exporters. Traders took some support with commerce ministry statement that India's merchandise exports surged 30.7 per cent to $40.19 billion in April on account of healthy performance by sectors like petroleum products, electronic goods and chemicals, even as trade deficit widened to $20.11 billion during the month. However, upside remain capped as India's retail inflation surged to an eight-year high of 7.79 percent in April, raising the prospect of another interest rate hike from the RBI in the next policy meeting in June. Besides, Industrial production growth remained subdued at 1.9 per cent in March compared to a year ago, mainly due to poor performance by the manufacturing sector which showed staggered impact of the third wave of the pandemic. On the global front, euro hovered near its weakest point since early 2017 on Friday after Russian sanctions led to disruptions in gas supplies to Europe, renewing fears about an economic slowdown in the euro zone.

Finally, the rupee ended at 77.47 (Provisional), stronger by 3 paise from its previous close of 77.50 on Thursday. The currency touched a high and low of 77.51 and 77.26 respectively.

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