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Rupee ends considerably weaker against dollar

06 Dec 2021 Evaluate

Rupee ended substantially weaker against dollar on Monday on account of continued dollar demand from importers and banks and massive sell in domestic stocks as concerns over the new Omicron variant also continued to weigh on sentiment. Traders’ mood was fragile as country's foreign exchange reserves declined by $2.713 billion to $637.687 billion in the week to November 26, RBI data showed. In the reporting week ended November 26, the dip in the foreign exchange reserves was on account of a decline in foreign currency assets (FCA), a major component of the overall reserves and gold reserves. Investors were worried as India Ratings and Research (Ind-Ra) stated that tightening of norms may increase non-banking finance companies' (NBFCs) headline non-performing advances (NPA) by around one third. On the global front, Sterling edged higher against dollar on Monday but remained close to a 2021 low hit last week as investors awaited a speech on monetary policy and economic growth from Bank of England Deputy Governor Ben Broadbent.

Finally, the rupee ended 75.45, weaker by 33 paise from its previous close of 75.12 on Friday. The currency touched a high and low of 75.45 and 74.19 respectively.


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