Continuing previous session losses, Indian rupee ended weaker against the US dollar on Monday, on increased demand for the greenback from importers and banks. Traders were worried as former World Bank Chief Economist Kaushik Basu’s statement that India's overall macroeconomic situation is in a recovery mode but the growth is concentrated at the top end, which is a worrying trend. Amid the rising inflationary trends, including the sharp increase in retail inflation last month, Basu said the country is facing stagflation and ‘very carefully curated policy interventions’ are required to address the situation. Some pessimism also came as Engineering Export Promotion Council of India has expressed concern that the spread of Omicron, the new variant of coronavirus, may once again disrupt the global supply chain, which could lead to a slowdown in trading activities. On the global front, yen edged higher ahead of the outcome of a central bank policy meeting on Tuesday, while the dollar seemingly ignored U.S. Treasury yields hitting new near two-year highs on their return from a long weekend break.
Finally, the rupee ended 74.24, weaker by 9 paise from its previous close of 74.15 on Friday. The currency touched a high and low of 74.35 and 74.13 respectively.
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