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Rupee concludes substantially weaker against dollar

18 Jan 2022 Evaluate

Continuing previous session losses, Indian rupee concluded substantially weaker against dollar on increased demand for the greenback from importers and banks. Traders were worried, as the International Labour Organization said that the global job market will take longer to recover than previously thought, with unemployment levels set to remain above pre-COVID-19 levels until at least 2023 due to uncertainty about the pandemic's course and duration. Additional pressure came with private report stating that the fast-spreading third wave of COVID-19 has undone the gains achieved due to resumption of business since the end of the lethal second wave last year. Besides, noting that the successive waves of the pandemic have severely dented consumer confidence that hit an all-time low of 48.5 in May 2021 at the peak of the second wave, an RBI bulletin released said even now the sentiment is yet to return to the pre-pandemic levels. Also, heavy selloff in the Indian equity markets impacted rupee sentiments. On the global front, sterling traded lower against the dollar on Tuesday after data showed British employers added a record number of staff in December, another sign the economy's rebound could potentially fuel further inflation.

Finally, the rupee ended 74.58, weaker by 33 paise from its previous close of 74.25 on Monday. The currency touched a high and low of 74.60 and 74.36 respectively.

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