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Indian rupee ends tad lower against dollar

24 Jun 2022 Evaluate

Indian rupee ended marginally weaker against dollar on Friday, on emergence of demand for the greenback from importers. Traders were worried as India's current account deficit (CAD) is expected to widen and be in the range of 2.6 per cent to 2.8 per cent of gross domestic product (GDP) in the current financial year FY23. The high merchandise trade deficit coupled with the fund outflow from financial markets has weakened India's external account or balance of payment position. However, downfall remain capped as India’s engineering exports stood at $9.79 billion in May 2022, recording a growth of 13.5 percent over the $8.62 billion reported in the same month a year ago, while the country saw its cumulative engineering exports growing by 16.84 percent at $19.39billion ($16.6 billion) during April-May 2022 period. On the global front, Sterling edged up against the dollar on Friday and was set for its first weekly rise in four weeks, as a weaker greenback and better-than-expected retail data allowed investors to look past mounting pressure on British Prime Minister Boris Johnson.

Finally, the rupee ended at 78.33 (provisional), weaker by 1 paise from its previous close of 78.32 on Thursday. The currency touched a high and low of 78.35 and 78.19 respectively.

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