Indian rupee concluded substantially weaker against dollar on Monday on account of continued dollar demand from importers and banks. Sentiments were dampened in its recent Regional Economic Outlook (REO), the IMF notes that the pandemic has taken a turn for the worse in Asia since the spring, along with the region’s growth outlook. The growth projection for the Asia and Pacific region is downgraded by more than 1 percent to 6.5 percent compared to the April 2021 forecasts--more than for any other region. Adding more pessimism foreign portfolio investors (FPIs) have turned net sellers in Indian market by pulling out Rs 3,825 crore in October so far. On the global front, dollar fell on Monday back towards a one-month low as traders continued to focus on the prospect of interest rate hikes and tightening outside of the United States.
Finally, the rupee ended 75.08, weaker by 18 paise from its previous close of 74.90 on Friday. The currency touched a high and low of 75.10 and 74.97 respectively.
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