Indian Rupee ended weaker against dollar on Friday, on account of sustained dollar demand from importers and banks. Sentiments were fragile as an analysis of industrial output and merchandise exports by India Ratings and Research suggested that the Indian manufacturing sector, which received a fillip in FY22 due to export growth, is likely to be hit by a slump in foreign trade activity in FY23. Additional pressure came after Reserve Bank of India turned net seller of the US currency in June after it sold USD 3.719 billion on a net basis. In the reporting month, the central bank purchased USD 18.96 billion from the spot market and sold USD 22.679 billion. Downfall in the Indian equity markets also impacted sentiments. On the global front, euro and sterling slipped to a one-month low versus the safe-haven U.S. dollar on Friday with investors worrying about further economic slowdown after Federal Reserve officials reiterated the need for higher rates.
Finally, the rupee ended at 79.84 (Provisional), weaker by 20 paisa from its previous close of 79.64 on Thursday. The currency touched a high and low of 79.84 and 79.73 respectively.
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