Continuing previous session gains, Indian rupee ended significantly higher against dollar, on persistent selling of the American currency by exporters. Rupee was traded higher despite industrial production growth re-entered the negative territory by contracting by 1.6 per cent in January, while retail inflation soared to a three-month high of 5.03 per cent in February on costlier food items. Also, Wholesale price-based inflation (WPI) in February rose to its 27-month high to 4.17 percent as against 2.03 percent a month ago in January. Traders ignored report that foreign portfolio investors (FPIs) were net sellers to the tune of Rs 7,013 crore so far this month in the Indian markets on profit-booking as jitters in global bond markets spooked investors. On the global front, dollar gained for a second consecutive session on Monday as rising U.S. Treasury yields forced traders to cut their bearish dollar bets to four-month lows.
Finally, the rupee ended at 72.46, stronger by 33 paise from its previous close of 72.79 on Friday. The currency touched a high and low of 72.75 and 72.40 respectively. The reference rate for the dollar stood at 72.68, and for Euro stood 86.88 on March 12, 2021. While the reference rate for the Yen stood at 66.77, the reference rate for the Great Britain Pound (GBP) stood at 101.47.