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Indian rupee ends tad lower against dollar

03 Jun 2022 Evaluate

Indian rupee ended weaker against the US dollar on Friday, on increased demand for the greenback from importers and banks. Traders were worried as report stated that as the country's fiscal policy is moving in sync with the monetary policy amid the runaway inflation, the tightening measures along with rising subsidies imply that the consolidated fiscal deficit may remain elevated at 10.2 per cent of GDP in FY23, down 20 bps from FY22. However, downfall remain capped as India's merchandise exports rose by 15.46 per cent to $37.29 billion in May 2022 as compared to $32.30 billion in the same month last year on account of healthy performance by sectors like petroleum products, electronic goods and chemicals. On the global front, dollar was little changed on Friday, even as risk appetite picked up ahead of U.S. jobs data.

Finally, the rupee ended at 77.62 (Provisional), weaker by 2 paise from its previous close of 77.60 on Thursday. The currency touched a high and low of 77.66 and 77.47 respectively.

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