Indian rupee ended marginally higher against dollar on Thursday, on persistent selling of the American currency by exporters. Traders remained positive as Fitch Solutions revised its forecast for Indian rupee to average Rs 73.50 per US dollar in 2021, slightly stronger from Rs 75.50 per US dollar previously, which reflects its view for the rupee to mostly trade sideways over the course of year. However, upside remain capped as private report stated that India's central bank may have to delay the start of monetary policy normalisation by three months amid rising COVID-19 cases, but barring the return of stringent lockdowns there is no significant threat to the economy's recovery. On the global front, spiking U.S. bond yields boosted the dollar on Thursday, helping it to revive from two-week lows after the Federal Reserve's push back against speculation over interest rate hikes.
Finally, the rupee ended 72.53, stronger by 2 paise from its previous close of 72.55 on Wednesday. The currency touched a high and low of 72.60 and 72.43 respectively. The reference rate for the dollar stood at 72.57, and for Euro stood 86.41 on March 17, 2021. While the reference rate for the Yen stood at 66.52, the reference rate for the Great Britain Pound (GBP) stood at 100.86.