Snapping previous session gaining streak, Indian rupee depreciated against dollar on Monday amid muted domestic equities and elevated crude oil prices weighed on investors mood. Sentiments were downbeat as former RBI Governor Raghuram Rajan said the Indian economy has some bright spots and a number of very dark stains and the government should target its spending carefully so that there are no huge deficits. Rajan also said the government needs to do more to prevent a K-shaped recovery of the economy hit by the coronavirus pandemic. Also, traders were keeping an eye on the US Fed’s January 25-26 meeting and will watch for pointers on the possibility of a pushback from Chairman Jerome Powell over the pace of interest rate increases, which have already been priced in by global investors. On the global front, pound touched a two-week low versus the dollar in early London trading on Monday, hurt by investor caution brought on by falling stocks and tensions between Russia and the West.
Finally, the rupee ended 74.62 (Provisional), weaker by 19 paise from its previous close of 74.43 on Friday. The currency touched a high and low of 74.69 and 74.42 respectively.
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