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Rupee ends weak on dollar demand from importers

22 Jun 2021 Evaluate

Continuing prevision session drubbing, Indian rupee ended weaker against dollar on Tuesday, on emergence of demand for the greenback from importers. Investors were worried with report stating that Indian companies' market capitalization has grown at the fastest pace last year among major economies despite contraction in GDP, flagging the risks to financial stability it poses. Traders took note of PHDCCI President Sanjay Aggarwal’s statement that calibrated measures are needed to support the country's economic recovery and to diminish the daunting impact caused by the second wave of the COVID-19 pandemic on trade and industry. Meanwhile, RBI in its latest report has showed that bank credit grew by 5.74 per cent to Rs 108.43 lakh crore and deposits rose by 9.73 per cent to Rs 153.13 lakh crore in the fortnight ended June 4, 2021. On the global front; sterling fell back on Tuesday against dollar, but the British currency was still above the two-month lows it reached on Monday after the Fed’s hawkish shift.

Finally, the rupee ended 74.37, weaker by 27 paise from its previous close of 74.10 on Monday. The currency touched a high and low of 74.40 and 74.05 respectively.

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