Rupee concludes substantially higher against dollar

Indian rupee ended substantially higher against dollar on Wednesday as banks and exporters continued to sell the US currency. Sentiments were upbeat as Services Export Promotion Council (SEPC) stated that India’s services exports are expected to reach over $240 billion during 2021-22. It is also seeking incentives from the government. SEPC Chairman Maneck Davar said that during the first five months of the current fiscal year, exports from the sector increased 14 per cent to $95 billion. Additional support came in as External Affairs Minister (EAM) S Jaishankar said that Indian and Israeli officials have agreed on the resumption of Free Trade negotiations and talks will start in November this year. Meanwhile, Reserve Bank of India (RBI) remained a net buyer of the US currency in August after it net purchased $3.747 billion from the spot market. On the global front; sterling laboured below a one-month high on Wednesday as traders said a dip in September inflation was unlikely to stop the Bank of England from raising interest rates soon.

Finally, the rupee ended 74.88, stronger by 47 paise from its previous close of 75.35 on Monday. The currency touched a high and low of 75.13 and 74.83 respectively.