Rupee ends with massive gains on persistent dollar selling

Indian rupee ended significantly higher against dollar on Tuesday, on account of persistent selling of the American currency by exporters. Sentiments were also buoyed by Chief Economic Advisor Krishnamurthy Subramanian’s statement that the ongoing trade war between the United States of America and China will not have any impact on Indian exports which is just below 2 per cent of the global trade.

Market participants paid no heed towards FICCI Economic Outlook Survey stating that India's economy will grow at a median rate of 6 per cent during the Q1FY20. The survey also pegged the annual median GDP growth forecast for 2019-20 at 6.9 per cent, with a minimum and maximum estimate of 6.7 per cent and 7.2 per cent, respectively.

Besides, positive trend in equity market coupled with dollar losing sheen against some other currencies overseas mainly aided the currency’s appreciation. On the global front, U.S. dollar edged lower on Tuesday amid investor consternation over current trade issues that led to increased volatility in the dollar-yen pairing a day earlier.

Finally, the rupee ended at 71.48, 54 paise stronger from its previous close of 72.02 on Monday. The currency touched a high and low of 71.45 and 71.87 respectively.