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Rupee ends substantially weaker against greenback

12 Jul 2022 Evaluate

Continuing previous session drubbing, Indian rupee concluded substantially weaker against dollar on Tuesday on account of continued dollar demand from importers and banks. Sentiments were fragile amid a private report stating that though there are signs of easing commodity prices, the economic outlook for the current financial year 2022-23 remains quite uncertain and will ride completely on the wheels of private consumption and investment demand. Some concern also came as exchange data showed foreign institutional investors (FIIs) remained net sellers on Monday as they offloaded shares worth Rs 170.51 crore. Besides, losses in the local equity market also dampened sentiments. Meanwhile, Reserve Bank of India (RBI) has made arrangement for domestic traders to settle imports and exports in rupees, a move is aimed at facilitating trade with sanctions-hit Russia. On the global front, euro fell against dollar weighed down by the likelihood of recession triggered by an energy crunch and an ECB rate rise campaign that lags far behind that of the Fed.

Finally, the rupee ended at 79.59 (provisional), weaker by 14 paisa from its previous close of 79.45 on Monday. The currency touched a high and low of 79.66 and 79.53 respectively.

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