Indian rupee ended flat on Monday due to mild dollar demand from banks and importers. Traders took some support as India's industrial production rose 3.2 per cent in October 2021. As per the Index of Industrial Production (IIP) data by the National Statistical Office (NSO), the manufacturing sector's output grew 2 per cent in October. However, upside remained capped as Reserve Bank of India (RBI) Governor Shaktikanta Das has cautioned depositors to be careful while chasing high returns as it comes with greater risk. Observing that depositors themselves also need to be very discerning, he said it is important to keep in mind that higher returns or higher interest rates are usually associated with higher risks. On the global front, dollar edged higher on Monday ahead of a slew of central bank meetings this week including the U.S. Federal Reserve, with investors eyeing how quickly it will unwind bond-buying and looking for clues on when it will start to raise rates in 2022.
Finally, the rupee ended unchanged (Provisional) from its previous close of 75.78 on Friday. The currency touched a high and low of 75.78 and 73.63 respectively.
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