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Rupee ends in negative against greenback

31 May 2021 Evaluate

Erasing prevision session gains, Indian Rupee ended considerably lower against dollar on Monday, on account of sustained dollar demand from importers and banks. Sentiments were impacted as foreign portfolio investors (FPI) turned out to be net sellers for second month in a row by taking out nearly Rs 1,730 crore from Indian markets in May as second wave of the coronavirus pandemic spooked investors' sentiment. In April, the total net outflow from the Indian capital markets (both equity and debt) stood at Rs 9,435 crore. Meanwhile, Reserve Bank of India in its latest report has said that bank credit growth decelerated to 5.6 percent in March 2021 from 6.4 percent a year ago. On the other hand, it said aggregate deposits growth accelerated to 12.3 per cent in March 2021 from 9.5 per cent in the same month of the previous year. On the global front; dollar remained under pressure on Monday, falling to a three-year low versus the yuan as economic activity data showed that China's recovery had slowed but remained on a strong footing.

Finally, the rupee ended 72.62, weaker by 17 paise from its previous close of 72.45 on Friday. The currency touched a high and low of 72.65 and 72.34 respectively.

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