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Rupee ends lower against greenback

11 Aug 2022 Evaluate

Rupee ended considerably weaker against dollar on Thursday on account of continued dollar demand from importers and banks. Sentiments were fragile as Investments by private equity and venture capital funds into Indian entities fell by 69 per cent to $3 billion during July. The investments in July are the lowest for any month in a year, and lower than the $4.9 billion recorded across 118 deals in the preceding month of June. Traders were also cautious ahead of key domestic macroeconomic data points like index of industrial production (IIP), consumer price index (CPI) and trade balance numbers due on August 12 for further cues. Meanwhile, Reserve Bank of India (RBI) in its latest data has showed that bank credit rose 14.52 per cent to Rs 123.69 lakh crore and deposits increased 9.14 per cent to Rs 169.72 lakh crore in the fortnight ended July 29. On the global front, dollar lost further ground versus other major currencies on Thursday, after traders reined in bets on an aggressive interest rate hike by the Federal Reserve after softer-than-expected U.S. inflation data the previous day.

Finally, the rupee ended at 79.94 (provisional), weaker by 69 paisa from its previous close of 79.25 on Wednesday. The currency touched a high and low of 79.94 and 79.22 respectively.

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