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Rupee ends weak on dollar demand from importers

25 Apr 2022 Evaluate

Continuing previous session drubbing, Indian rupee ended weaker against dollar on Monday due to fresh buying of the American currency by banks and importers. Sentiments were fragile as India's crude oil import bill nearly doubled to $119 billion in the fiscal year that ended on March 31, as energy prices soared globally following the return of demand and war in Ukraine. Additional pressure came in as private report cut India's 2022-23 economic growth forecast by 70 basis points to 7 percent, citing slowing global growth due to high commodity prices, and weak local demand because of energy price hikes, inflationary pressures and a struggling labour market. Besides, downfall in equity markets also dented traders’ sentiments. On the global front, dollar climbed to a two-year high versus its rivals on Monday and was on track for its single biggest daily gain in more than six weeks as a wave of risk aversion swept through global markets, boosting the greenback's safe haven appeal.

Finally, the rupee ended at 76.64 (Provisional), weaker by 22 paise from its previous close of 76.42 on Friday. The currency touched a high and low of 76.77 and 76.55 respectively.

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