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Rupee ends lower ahead of RBI monetary policy

09 Feb 2022 Evaluate

Continuing previous session's loss, Indian ended lower against dollar weighed down by significant foreign fund outflows and rising crude oil prices. Traders were cautions, ahead of the Reserve Bank of India's monetary panel committee (MPC) meeting outcome on Thursday morning. The RBI’s policy announcement will be the key focus tomorrow as domestic inflation and policy tightening by global central banks would pressurize the central bank to adopt a similar stance. Investors paid no heed toward preliminary data of the commerce ministry showing that India’s exports grew by 28.51 per cent to $8.67 billion during February 1-7 on account of healthy growth in sectors such as petroleum, engineering and gems and jewellery. The exports during the first week of this month rose by about 31 per cent. On the global front, euro steadied on Wednesday, off from a three-week high, after the European Central Bank President Christine Lagarde dialled down bets for aggressive interest rate hikes.

Finally, the rupee ended at 74.84 (Provisional), weaker by 10 paise from its previous close of 74.74 on Tuesday. The currency touched a high and low of 74.87 and 74.68 respectively.

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