Indian rupee ended higher for third straight session against dollar on Friday due to fresh selling of the American currency by banks and exporters. The rupee also derived its strength from strong gains in the local equity markets. Rupee got support as India has significantly improved its ranking in terms of trade facilitation due to various reforms undertaken by various departments especially customs under the Central Board of Indirect Taxes (CBIC). However, upside remain capped as former world bank chief economist Kaushik Basu stated that India's wholesale price-based inflation is at a 30-year high, leading to a very alarming situation for the country. He, however, doesn't see any risk of hyperinflation, but cautioned that if retail inflation follows wholesale prices, it might lead to ‘inflationary crisis’. On the global front, sterling fell on Friday despite better-than-expected retail sales data as investors weighed up the risk of a further rise in COVID-19 cases and the impact of self-isolation on Britain's food and travel industries.
Finally, the rupee ended 74.40, stronger by 6 paise from its previous close of 74.46 on Thursday. The currency touched a high and low of 74.58 and 74.37 respectively.