Rupee strengthens for second straight session on Friday

Indian rupee strengthened for the second consecutive session on Friday, on dollar selling by exporters and banks. The rupee sentiment was buoyed with Commerce Secretary Anup Wadhawan’s report that exports growth of the country in the current fiscal is likely to be in double-digits despite the challenging situation both on the external and internal fronts. He added that in the last financial year, growth in exports was between 9 and 10 per cent and the volume touched US$331 billion.

Meanwhile, India’s merchandise exports grew by 2.25 per cent in July 2019 to US$26.33 billion as compared to the same period last year, on the back of higher shipments of organic goods, drugs and pharmaceuticals. Trade deficit, gap between imports and exports, narrowed to US$13.43 billion in July from US$18.63 billion a year ago, helped by lower oil import bill. 

However, dollar's strengthening against some other currencies overseas along with rising crude oil prices capped the gains. On the global front, dollar rallied on Friday, hitting a two-week high against the Euro as expectations for lower interest rates weighed on the European currencies.

Finally, the rupee ended at Rs. 71.14 per dollar, 13 paise stronger from its previous close of Rs. 71.27, on Wednesday. The currency touched a high and low of 70.50 and 71.47, respectively on Friday.