Indian rupee depreciated against dollar on Monday due to demand for American currency from banks and importers. Uncertainty over the war in Ukraine and persistently high inflation kept investors worried. Sentiments were also fragile as Reserve Bank of India’s deputy governor Michael Patra said India's growth story remains as weak as it was during the 2013 taper tantrum and recent geopolitical tensions in Ukraine and Russia are further likely to hurt a recovery. Investors’ paid no heed to India’s merchandise exports rose 25.10 per cent to $34.57 billion in February 2022 as compared to $27.63 billion in February 2021, on account of healthy growth in sectors like engineering, petroleum and chemicals. Meanwhile, India's industrial growth in the month of January grew 1.3% year-on-year. It had slumped to a 10-month low of 0.4% in December 2021. On the global front, dollar slipped on Monday, but was still near a five-year high versus Japan's yen as investors braced for a busy week of major central bank meetings.
Finally, the rupee ended at 76.54, weaker by 10 paise from its previous close of 76.44 on Friday. The currency touched a high and low of 76.69 and 76.51 respectively.
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