Indian rupee appreciates significantly on supportive macro data

Reversing previous session drubbing, Indian rupee ended appreciated significantly on Wednesday, owing to dollar sale by exporters and banks, positive domestic equities and weak American currency in the overseas markets boosted investor sentiment. Traders got support after India's gross domestic product (GDP) in the second quarter of the fiscal year 2021-22 grew at 8.4 percent. The numbers mark a significant increase as compared to the COVID-19-hit second quarter of last fiscal year, when the GDP had declined by 7.4 percent. In another positive development, India Manufacturing PMI hits 10-month high of 57.6 in November on strong demand. The seasonally adjusted IHS Markit India Manufacturing Purchasing Managers’ Index (PMI) increased at 57.6 in November, which is a jump from 55.9 in October. On the global front, pound inched higher on Wednesday but held near a 2021 low versus the U.S. dollar as doubts grew on whether the Bank of England will raise interest rates at a policy meeting this month.

Finally, the rupee ended 74.91 (Provisional), stronger by 22 paise from its previous close of 75.13 on Tuesday. The currency touched a high and low of 75.02 and 74.79 respectively.