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Rupee settles lower against greenback

02 Jun 2022 Evaluate

Indian rupee concluded substantially weaker against dollar on Thursday, on account of sustained dollar demand from importers and banks. Traders were concerned as the Ministry of Finance said the gross GST (Goods and Services Tax) revenue for the month of May crossed over Rs 1.40 lakh crore, a 16.6 per cent drop in comparison to April when GST collections were at a record high. Some concern also came with a private report that even as the government is planning to put a leash on wasteful revenue spending to rein in fiscal deficit, it has decided against trimming the record budgetary capital expenditure target for FY23, betting big on its high multiplier effect to spur growth. On the global front, euro and the yen rose on Thursday, reversing some recent losses against the U.S. dollar after Swiss inflation soared to its highest in 14-years.

Finally, the rupee ended at 77.60 (Provisional), weaker by 10 paise from its previous close of 77.50 on Wednesday. The currency touched a high and low of 77.63 and 77.54 respectively.

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