Continuing previous session loss, Rupee ended significantly lower against dollar as geopolitical tensions pushed investors towards safe-haven assets. Also, continues rise in crude oil prices to seven-year peaks and FII outflow impacted traders sentiments. Foreign portfolio investors (FPIs) have withdrawn a net Rs 14,935 crore from the Indian market in the first half of February. FPIs have been net sellers for the fourth consecutive month. Additional pressure came as India’s industrial production growth slowed down for a fourth straight month in December to 0.4 per cent mainly due to a poor performance by the manufacturing sector. Also, wholesale inflation across the country rose to 12.96 per cent in January, which was higher than expectation. Meanwhile, Finance Minister Nirmala Sitharaman stated that discussions with regard to central bank-backed digital currency have been going on with the Reserve Bank and a decision will be taken after due deliberations. On the global front, dollar rose on Monday to a two-week high as investors sought safe-haven assets on fears that Russia is preparing to invade Ukraine.
Finally, the rupee ended at 75.60 (Provisional), weaker by 24 paise from its previous close of 75.36 on Friday. The currency touched a high and low of 75.64 and 74.37 respectively.
