Reversing previous session losses, Indian rupee ended significantly higher against dollar on Monday, owing to dollar sale by exporters and banks and positive domestic equities. Sentiments were upbeat as India recorded the highest-ever exports of $95 billion during April-June, up 85 per cent Y-o-Y and 18 per cent higher than the first quarter of the fiscal year 2019-20. The merchandise exports grew 47 per cent Y-o-Y to $32.46 billion in June, driven by a robust demand of engineering goods, petroleum products, and gems and jewellery in the external markets. Traders were also energized as in reversal of a two-month selling trend, foreign portfolio investors (FPIs) in June turned out to be net buyers by investing Rs 13,269 crore in Indian markets. Investors’ overlooked report that India's services sector activities contracted further in June as the intensification of the COVID-19 crisis and reintroduction of containment measures restricted demand. The seasonally adjusted India Services Business Activity Index fell from 46.4 in May to 41.2 in June. On the global front, sterling nudged higher on Monday with the British government expected to announce it will proceed with plans to fully reopen the economy later this month despite a surge in COVID-19 cases.
Finally, the rupee ended 74.31, stronger by 43 paise from its previous close of 74.74 on Friday. The currency touched a high and low of 74.55 and 74.00 respectively.