Indian rupee ended considerably lower against dollar on Monday on emergence of demand for the greenback from importers. Sentiments were fragile as trade deficit spiked to almost $23 billion in September from $13.8 billion in the previous month, as imports surged at a much faster pace than exports, driven by elevated global crude oil prices and massive purchases of gold in the build-up to the festival season. Traders shrugged off report that India’s merchandise exports jumped 21.35% to $33.44 billion in September 2021 as compared to $27.56 billion in September 2020, mainly due to better performance by key sectors like engineering goods and petroleum products. On the global front, dollar edged higher on Monday after two consecutive sessions of losses as hedge funds ramped up their holdings as widening concerns about the Chinese property sector and resilient U.S. Treasury yields boosted the appeal of the greenback.
Finally, the rupee ended 74.31, weaker by 19 paise from its previous close of 74.12 on Friday. The currency touched a high and low of 74.41 and 74.13 respectively.
