Indian rupee tumbled against dollar on Monday, on account of sustained dollar demand from importers and banks amid rising crude oil prices and lacklustre trend in domestic equities. Amid intensifying Russia-Ukraine conflict, investors assessed diplomatic efforts to negotiate an end to the war. Traders were worried as latest data from the RBI, the country’s foreign exchange reserves declined $9.646 billion to $622.275 billion in the week ended March 11. Adding pessimism, retail inflation for farm workers and rural labourers rose to 5.59 per cent and 5.94 per cent respectively in February, mainly due to higher prices of certain food items. On the global front, dollar edged lower versus major currencies on Monday, with investors awaiting remarks from U.S. Federal Reserve chair Jerome Powell later in the day and from other central bank policymakers this week for monetary policy clues.
Finally, the rupee ended at 76.18 (Provisional), weaker by 34 paise from its previous close of 75.84 on Thursday. The currency touched a high and low of 76.18 and 76.03 respectively.
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