Indian rupee ends stronger against dollar

Indian rupee ended stronger against dollar on Friday due to fresh selling of the American currency by banks and exporters. Some support came as Reserve Bank of India (RBI) said the inflation trajectory is coming down faster than anticipated and the inflation print of 5.3 per cent in August has proven the monetary policy committee’s (MPC) move to look through May’s price shock as the right call. However, upside remain limited traders were cautious as Finance Minister Nirmala Sitharaman is chairing the 45th meeting of the Goods and Service Tax (GST) Council in Lucknow today. The meeting is the first in-person meeting of the GST Council in nearly two years. Extension of compensation to states beyond 2022 is expected to be on the agenda. The Council will likely discuss rationalizing an inverted duty structure. On the global front; sterling held below a recent one-month high versus the dollar on Friday as UK retail sales undershot expectations, while some investment banks brought forward their forecast for a Bank of England rate rise to the middle of 2022.

Finally, the rupee ended 73.48, stronger by 4 paise from its previous close of 73.52 on Thursday. The currency touched a high and low of 73.55 and 73.42 respectively.